Report for the quarter ended 31 March 2014
Production 1.06Moz improving 17% yeara -on-year and well ahead of 950Koz–1Moz guidance Total cash costs decrease 14% year-on-year to $770/ooz, beating guidance of $800/oz-$850/oz All-in-sustaining cost (AISC) decreased by 22% year-on-year to $993/oz on lower capex, cash costs and overhead costs Adjusted headline earnings $119m, or 29 US cents per share International operations see 34% rise in output to 765,000oz year-on-year, and 22% drop in AISC to $972/oz South Africa production down 11% to 290,0000z year-on-year, while AISC improves to $975/oz or 14% Tropicana contributes 84,000oz at total cash cost of $4495/oz; AISC of $694/oz Kibali contributes 51,000oz at total cash cost of $538/ozz; AISC of $572/oz Net debt stable at $3.105bn Cash flow from operating activities stable year-on-year at $350m, despite 21% lower gold price
Quarter Year ended ended ended ended Mar Dec Mar Dec 2014 2013 2013 2013 US dollar / Imperial Operating review Gold Produced - oz (0000) 1,055 1,229 899 4,105 Price received 1 - $/oz 1,290 1,271 1,636 1,401 All-in sustaining cost 2 - $/oz 993 1,015 1,275 1,174 All-in cost 2 - $/oz 1,114 1,233 1,622 1,466 Total cash costs 3 - $/oz 770 748 894 830
Financial review Adjusted gross profit 4 - $m 312 376 434 1,351 Gross profit - $m 296 404 434 1,445 Profit (loss) attributable to equity shareholders - $m 39 (305) 239 (2,230) - cents/share 10 (75) 62 (568) Headline earnings (loss) - $m 38 (276) 259 78 - cents/share 9 (68) 67 20 Adjusted headliine earnings 5 - $m 119 45 113 599 - cents/share 29 11 29 153 Dividends per ordinary share - cents/share - - 5 5 Cash flow from operating activities - $m 350 431 356 1,246 Capital expenditure - $m 274 477 512 1,993
Notes: 1. Refer to note C "Non-GAAP disclosure" for the definition. $ represents US dollar, unless otherwise stated. 2. Refer to note D "Non-GAAP disclosure" for the definition. Rounding of figures may result in computational discrepancies. 3. Refer to note E “Non-GAAP disclosure” for the definitioon. 4. Refer to note B "Non-GAAP disclosure" for the definition 5. Refer to note A "Non-GAAP disclosure" for the definition.
Certain statements contained in this document, other than statements of historical fact, including, without limitation, those concerning the econoomic outlook for the gold mining industry, expectations regarding gold prices, production, cash costs, cost savings and other operating results, return on equity, producttivity improvements, ggrowth prospects and outlook of AngloGold Ashanti’s operations, individually or in the aggregate, including the achievement of project milestones, commencement and completion of commercial operations of certain of AngloGold Ashanti’s exploration and production projects and the completion of acquisitions and dispositions, AngloGold Ashanti’s liquidity and capital ressources and capital expenditures and the outcome and consequence of any potential or pending litigation or regulatory proceedings or environmental issues, arre forward-looking sttatements regarding AngloGold Ashanti’s operations, economic performance and financial condition. These forward-looking statements or forecasts involve known and unknown risks, unceertainties and other factors that may cause AngloGold Ashanti’s actual results, performance or achievements to differ materiially from the anticipated results, performance or achievementts expressed or implied in these forward- looking statements. Although AngloGold Ashanti believes that the expectations refflected in such forward-looking statements and forecasts are reeaasonable, no assurance can be given that such expectations will prove to have been correct. Accordingly, results could difffer materially from those set out in the foro ward-looking statements as a result of, among other factors, changes in economic, social and political and market conditions, the success of business and operating initiatives, changes in the regulatory ennvironment and other government actions, including environmental approvals, fluctuations in gold prices and exchange rates, the outcome of pending or future litigation proceedings, and buusiness and operational risk management. For a discussion of such risk factors, refer to AngloGold Ashanti’s Form 20-F that was filed with the United States Securities and Exchange Commission (“SEC”) on 14 April 2014. These factors are not necessarily all of the important factors that could cause AngloGold Ashanti’s actual results to differ materially ffrom those expressedd in any forward-looking statements. Other unknown or unpredictable factors could also have material adverse effects on future results. Consequently, readers are cautioned not to place undue reliance on forward-looking statements. AngloGold Ashanti undertakes no obligation to update publicly or release any revisions to these forward-looking statements to refleect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events, except to the extent required by applicable law. All subsequent written or oral fforward-looking statements attributable to AngloGold Ashanti or any person acting on its behalf are qualified by the cautionary statements herein.
This communication may contain certain “Non-GAAP” financial measures. AngloGGold Ashanti utilises certain Non-GAAP perrformance measures and ratios in managing its business. Non- GAAP financial measures should be viewed in addition to, and not as an alternative for, the reported operating results or cash flow from operatioons or any other measures of performance prepared in accordance with IFRS. In addition, the presentation of these measures may not be comparable to similarly titled measures other commpanies may use. AngloGold Ashanti posts information that is important to investors on the main page of its website at www.anglogoldashanti.com and under the “Investors” tab on the main ppage. This information is updated regularly. Investors should visit this website to obtain important information about AngloGold Ashanti.
Quarrtter 1 2014
March 2014 Quarterly Report - www.AngloGoldAshanti.com WorldReginfo - 151229a5-2fa8-4a9a-9559-9c836edee9ed
March 2014 Quarterly Report - www.AngloGoldAshanti.com WorldReginfo - 151229a5-2fa8-4a9a-9559-9c836edee9ed Operations at a glance for the quarter ended 31 March 2014 Adjusted Production All-in sustaining costs1 Total cash costs 2 gross profit (loss) 3
Year-on-year Qtr on Qtr Year-on-year Qtr on Qtr Year-on-year Qtr on Qtr Year-on-year Qtr on Qtr oz (000) % Variance 4 % Variance 5 $/oz % Variance 4 % Variance 5 $/oz % Variance 4 % Variance 5 $m $m Variance 4 $m Variance 5
SOUTH AFRICA 290 (11) (14) 975 (14) (3) 797 (11) 4 60 (94) (46) Vaal River Operations 102 (11) (20) 1,020 (25) (6) 851 (16) 12 9 (26) (24) Great Noligwa 17 (29) (15) 1,200 (3) (7) 1,123 1 9 1 (8) (1) Kopanang 29 (38) (26) 1,320 7 2 1,074 15 18 (15) (35) (16) Moab Khotsong 55 28 (18) 802 (49) (10) 646 (39) 8 23 18 (7) West Wits Operations 128 (15) (17) 925 (14) 1 735 (13) 3 34 (48) (31) Mponeng 76 (18) (18) 930 - (3) 709 - 8 25 (38) (11) TauTona 52 (10) (16) 916 (31) 8 774 (28) (4) 9 (11) (20) Total Surface Operations 60 (5) 3 1,000 20 (4) 836 4 (9) 16 (20) 7 First Uranium SA 24 - (11) 1,243 41 20 831 1 (1) 1 (5) (2) Surface Operations 36 (5) 20 840 5 (19) 839 6 (14) 15 (16) 9
INTERNATIONAL OPERATIONS 765 34 (14) 972 (22) (2) 759 (15) 2 270 (39) (1) CONTINENTAL AFRICA 374 36 (19) 1,042 (24) (8) 808 (19) (4) 119 (10) 2 DRC Kibali - Attr. 45% 6 51 - 28 572 - 22 538 - 14 25 25 3 Ghana Iduapriem 45 10 (33) 898 (30) (22) 716 (32) (26) 20 5 13 Obuasi 53 8 (16) 1,530 (41) (26) 1,234 (29) (9) (3) 27 12 Guinea Siguiri - Attr. 85% 70 13 (7) 961 (18) (14) 800 (20) (5) 25 (15) 8 Mali Morila - Attr. 40% 6 10 (33) (17) 1,598 81 11 1,099 42 29 1 (11) (2) Sadiola - Attr. 41% 6 19 - (21) 1,404 7 (14) 1,262 14 (16) (6) (15) 4 Yatela - Attr. 40% 6 4 (60) (50) 2,062 53 (7) 1,804 37 (6) (3) (5) 5 Namibia Navachab 16 14 (11) 785 (22) 49 771 (14) 47 9 3 (5) Tanzania Geita 106 61 (31) 1,048 19 34 631 62 16 47 (22) (42) Non-controlling interests, 3 (1) 4 exploration and other
AUSTRALASIA 155 154 (8) 929 (50) 22 779 (40) 22 59 56 29 Australia Sunrise Dam 71 16 (30) 1,095 (37) 36 1,066 (15) 56 16 9 (7) Tropicana - Attr. 70% 84 - 27 694 - 8 495 - (13) 48 48 39 Exploration and other (5) (1) (3)
AMERICAS 236 1 (10) 879 (5) (1) 668 - 5 92 (85) (33) Argentina Cerro Vanguardia - Attr. 92.50% 58 5 (5) 800 (16) (6) 644 10 (4) 28 (14) 6 Brazil AngloGold Ashanti Mineração 94 2 (22) 805 (14) (10) 619 (10) 19 38 (28) (31) Serra Grande 32 - (6) 1,027 8 7 799 1 12 6 (17) ( 6) United States of America Cripple Creek & Victor 52 (5) 11 1,015 37 (6) 699 9 (15) 18 (25) (4) Non-controlling interests, 2 - 2 exploration and other
OTHER (1) 4 (6)
Sub-total 1,055 17 (14) 993 (22) (2) 770 (14) 3 329 (128) (53)
Equity accounted investments included above (17) 6 (11)
AngloGold Ashanti 312 (122) (64)
1 Refer to note D under "Non-GAAP disclosure" for definition 2 Refer to note E under "Non-GAAP disclosure" for definition 3 Refer to note B under "Non-GAAP disclosure" for definition 4 Variance March 2014 quarter on March 2013 quarter - increase (decrease). 5 Variance March 2014 quarter on December 2013 quarter - increase (decrease). 6 Equity accounted joint ventures.
Rounding of figures may result in computational discrepancies.
March 2014 Quarterly Report - www.AngloGoldAshanti.com 1 WorldReginfo - 151229a5-2fa8-4a9a-9559-9c836edee9ed Financial and Operating Report
OVERVIEW FOR THE QUARTER
FINANCIAL AND CORPORATE REVIEW
First-quarter adjusted headline earnings (AHE) were $119m, or 29 US cents per share in the three months to 31 March 2014, compared with $45m, or 11 US cents per share the previous quarter, and $113m, or 29 US cents per share a year earlier, in the first quarter of 2013.
Net profit attributable to equity shareholders for the first quarter of 2014 was $39m, compared to a loss of $305m the previous quarter which was mainly impacted by year-end adjustments, including impairments of assets and inventory write-downs.
Operational performance for the first quarter was strong with both production and costs coming in better than market guidance. Production was 1,055koz at an average total cash cost of $770/oz, compared to 1,229koz at $748/oz the previous quarter and 899koz at $894/oz in the first quarter of 2013. Guidance for the quarter was 950,000oz to 1Moz at a total cash cost of $800-850/oz. Year-on-year costs benefited from higher output, weaker currencies and early indications are that a range of cost saving initiatives continue to gain traction.
“Our operators have delivered another strong performance and we continue to manage costs aggressively,” Srinivasan Venkatakrishnan, Chief Executive Officer of AngloGold Ashanti, said. “There’s still plenty of work to do, but with a strong team intact, a good foundation, and some significant wins under our belt, we remain focused on continuing to deliver positive results to our shareholders under tough market conditions.”
Production from most operating regions improved year-on-year, with the exception of the South Africa region, where marginal and loss-making ounces have been removed from the production profile. In addition, the region struggled with a slower-than-anticipated start-up after the Christmas break and interruptions from safety-related stoppages, following a challenging safety performance for the gold sector in general. South African operations saw an 11% year-on-year decline to 290,000oz; Continental Africa improved 36% to 374,000oz; the Americas gained 1% to 236,000oz; and Australia was up 154% to 155,000oz. Continental Africa and Australia both benefited from the inclusion of new mining operations at Kibali and Tropicana, respectively. Total cash costs dropped $124/oz compared to the previous year, from $894/oz to $770/oz, reflecting significant improvements from a combination of cost saving initiatives, currency weakness, removal of some marginal and loss-making production and higher output in some areas. All-in sustaining costs (AISC) were $993/oz, a 22% improvement year-on-year, and 2% lower than the previous quarter. The year-on-year decline in AISC was due to lower sustaining capital expenditure, improved cash costs and further reductions in corporate costs ($40m) and sustaining exploration expense ($21m).
Total capital expenditure during the first quarter was $274m (including equity accounted joint ventures), compared with $477m the previous quarter and $512m in the first quarter of last year. This was somewhat less than planned, due to lower expenditure at Kibali and Obuasi, and is expected to increase in the second quarter. Of the total capital spent, project capital expenditure during the quarter amounted to $115m. Free cash flow improved from negative $82m in the previous quarter to positive $9m in the first quarter, reflecting improved costs, higher production and a reduction in capital expenditure.
At the end of the first quarter of 2014, Net Debt was US$3.095bn compared to $3.105bn in the previous quarter, resulting in a Net Debt to EBITDA ratio of 1.9 times.
March 2014 Quarterly Report - www.AngloGoldAshanti.com 2 WorldReginfo - 151229a5-2fa8-4a9a-9559-9c836edee9ed Summary of quarter-on-quarter operating and cost improvements:
Year on year Performance update Q1 2014 Q1 2013 change
Gold price received ($/oz) 1,290 X 1,636 (21%)
Gold Production (Koz) 1,055 899 17%
Total cash costs ($/oz) 770 894 14%
Corporate and marketing costs* ($m) 25 65 62%
Exploration and evaluation costs ($m) 30 79 62%
Capital expenditure ($m) 274 512 47%
All-in sustaining costs**($/oz) 993 1,275 22%
EBITDA ($m) 476 X 509 (7)%
Cash flow from operating activities ($m) 350 X 356 (2%)
Free cash flow ($m) 9 (227) 104%
* including administration and other expenses. ** World Gold Council Standard, excludes stockpiles written off.
CORPORATE UPDATE
Addressing the underperformance at Obuasi remains a key objective for AngloGold Ashanti. The restructuring and repositioning of the Obuasi mine, which is subject to a number of consents, is likely to result in a substantial reduction in the mine’s existing operations and significant work force redundancies (which we currently estimate at approximately $220m). Fundamental changes aimed at systemically addressing legacies, infrastructure, development constraints and cash outflows are being implemented. This work includes initiatives to reduce the footprint of the operation and consolidate infrastructure, lower operating costs by introducing a mechanised mining approach in the future, together with the refurbishment and automation of the processing plant. AngloGold Ashanti is also considering other strategic alternatives for its Ghana business. UPDATE ON CAPITAL PROJECTS
At the Kibali project, a joint venture between state-owned Sokimo (10%), AngloGold Ashanti (45%) and operator Randgold Resources (45%), steady production ramp-up progress is being made by Randgold Resources. The development work on the twin declines is progressing well with a total of 1,656 lateral metres achieved this quarter, exceeding plans by 12.5%. The major equipment on the sulphide circuit has been commissioned. The focus for the next quarter is the completion and handover of the metallurgical plant and the commissioning of the Nzoro hydro power station. The vertical shaft also continues to make good progress and is currently 5% ahead of plan. The vertical shaft depth at the end of March was 416.5m. Attributable production for the 2014 year is expected to be between 251,000oz and 269,00oz at total cash cost of $488/oz-$520/oz. The mineral resources and ore reserves are 10.0Moz and 5.2Moz, respectively.
March 2014 Quarterly Report - www.AngloGoldAshanti.com 3 WorldReginfo - 151229a5-2fa8-4a9a-9559-9c836edee9ed In the Americas, the Mine Life Extension project at CC&V (approved cost over 5 years $585m) is progressing in line with expectations. The mill schedule is expected for commissioning/production ramp up in the fourth quarter of 2014, with full production in 2016. The valley heap leach facility (VLF) and associated gold recovery plant is on schedule to commission mid-2016. The planned VLF2/ADR2 schedule is as follows:
• 2014: complete lining the pregnant solution pond area (triple lined area) and start filling the area for the ADR2 (the gold recovery plant) platform.
• 2015: complete the ADR2 pad, construct the ADR2 plant (the gold recovery plant), and start loading ore on the first phase VLF2.
• 2016: commission ADR2/VLF2 and start gold production.
As of 31 March 2014, overall project progress is 40% complete. The mill is largely on schedule to commission and we expect first gold production in the fourth quarter of 2014. Overall construction of the mill is 65% complete. To help facilitate the construction completion schedule, additional man-shifts, including nights and weekends, have been added to the work schedule. Mill concrete construction is 73% complete with 8.4k cubic-yards of concrete poured. A total of 1,150 tons of steel has been erected, which represents 35% of the total steel planned. Capex for this project is estimated at $585m with $234m having already been spent to date. The mineral resources and ore reserves are 10.8Moz and 4.7Moz respectively.
UPDATE ON COST OPTIMISATION AND PORTFOLIO REVIEW
Cost optimisation and portfolio review: A process remains underway to improve efficiency across the business, to identify long-term savings in the company’s direct and indirect cost base and to optimise capital expenditure. The previously announced Project 500 initiatives remain on track with the goal to realise approximately $500m of cost savings by the end of the year. Achievements resulting from these initiatives include:
In the South Africa region, savings of $56m were achieved during the first quarter through the deferment of capital expenditure, labour and contractor reductions, a decrease in consumables, the implementation of service optimisation strategies and a critical review of commodity as well as services related contracts.
Contract mining rates at Siguiri and Sadiola were reduced by between 16% and 14%, delivering an annual saving of $15m.
Negotiated a 32% lower Cyanide price for our West African operations, for an annual saving of roughly $10.5m. In addition, improved Cyanide control systems have further lowered costs at various sites, including Iduapriem, which has cut usage by 30%.
The number of global expatriates on mine sites has been reduced resulting in a saving of more than $10m at the end of March 2014.
Consumable stores inventory in Continental Africa has been reduced by $52m since July 2013.
Sunrise Dam has improved Jumbo development rates from 330m to 420m per month, coupled with a 10% improvement in trucking productivities over the same period. This has allowed the mine to demobilise two trucks and one loader, reducing monthly fixed costs by about A$195,000 and reducing quarter-on-quarter variable unit rates by A$300,000.
SA LABOUR UPDATE
The two-year wage agreement which was concluded in September 2013 was implemented and backdated to 1 July 2013. AMCU voluntarily participated in the negotiations but has not yet signed the wage agreement.
March 2014 Quarterly Report - www.AngloGoldAshanti.com 4 WorldReginfo - 151229a5-2fa8-4a9a-9559-9c836edee9ed However, the wage agreement was extended to all employees regardless of their respective union affiliations and as a result the AMCU members have all benefited from the resulting wage increase.
On 30 January 2014, the Labour Court declared a threatened AMCU strike unprotected, with an interim interdict for any possible strike. AMCU has since applied for a court hearing on a constitutional point which will be heard on 5 June 2014. The current interdict remains in place until the matter is finalised in the Labour Court.
TECHNOLOGY AND INNOVATION UPDATE
During the first quarter, the Technology Innovation Consortium has continued to make considerable progress in prototype development pertaining to certain key technologies that seek to establish the base for a safe, automated mining method intended for selective use at AngloGold Ashanti’s deep-level underground mining operations in South Africa.
Although achieving good results in several of the drilling aspects (skin-to-skin), the challenge to mine “All the Gold” with no dilution remains. In this respect, work is currently focused on drilling an overlapping hole configuration. Progress on various aspects of the Tau Tona project are as follows:
Reef Boring (Stoping): In the first quarter, four single-pass (660mm) holes were drilled. In line with our efforts to test and extract all the gold, holes 18, 19 and 20 have been drilled directly adjacent to (‘skin-to- skin’) previously drilled and backfilled holes. The overall results proved to be successful and the data gathered together with the knowledge of the ground conditions will be applied to enhance drilling of new holes. In addition, the production drilling sequence is also being tested and the results obtained will be applied to the production site once drilling commences. Hole 21 was drilled as the first hole in this sequence.
Site Equipping: Site equipping, opening up and development of the 2014 production sites is progressing according to schedule. The first production site at TauTona mine will go live in the second quarter, followed by a site at Great Noligwa and a second site at TauTona, during the second quarter.
Potential drilling sites for 2015 production have been identified. Labour recruitment, development and equipping are in progress.
Machine Manufacturing: The medium reef (width 40-80cm) Atlantis Mark 3 machine was delivered at the TauTona mine to align with the production start-up schedule in the second quarter. Machine manufacturing is continuing with the next machines to be delivered in accordance with the respective production start-up schedules at the other business units.
Ultra High Strength Backfill (UHSB): Construction of the underground backfill plant is in progress and is on schedule to coincide with the start-up of the first production site in the second quarter at TauTona mine. A replica of the underground production site mixers have been constructed on surface to confirm the mixing cycles and also to gather information to automate the underground plant to ensure operational readiness.
Ore body Knowledge and Exploration: Trial 4, aimed at achieving a hole depth of 150m at 8m/hr, was completed during the quarter and a total of 5 holes were drilled. The results obtained were promising as they reached the required depth and speed. Surveying of the holes has commenced where the Gyro will be tested for hole deflection, the camera for geological structure and lastly the Gamma for reef intersection.
The strategy for the second quarter of 2014 is to test a different drilling technique (rotary percussion drilling) using the same drilling system with the aim to compare the speed and accuracy of results. In the latter part of the year, we expect the team will continue with reverse circulation tests incorporating a new high pressure compressor with the objective of achieving a hole depth of 300m at 8m/hr.
March 2014 Quarterly Report - www.AngloGoldAshanti.com 5 WorldReginfo - 151229a5-2fa8-4a9a-9559-9c836edee9ed SAFETY
The All-Injury Frequency Rate (AIFR) improved 3% compared to the first quarter of 2013. The safety focus continues on Major Hazard Management through identification and monitoring of critical controls and High Potential Incidents (HPIs) with a view of enhancing organisational learning and institutionalising change in order to improve our safety record progress going forward. Given that the occurrence of HPIs in the past correlates with fatal incidents experienced by the business, they used as learning opportunities to prevent future occurrences.
Kopanang made history on 10 March 2014 as it became the first AngloGold Ashanti mine in South Africa to achieve three million fatality-free shifts.
Tragically, however, two incidents resulted in three fatalities during the quarter. There was one fatality at the Mponeng project in South Africa, and two contractor employees lost their lives at a single incident at the Cuiabá mine in Brazil whilst renovating the vent shaft.
OPERATING HIGHLIGHTS
The South African operations produced 290,000oz during the first quarter at a total cash cost of $797/oz, compared to 327,000oz at a total cash cost of $896/oz, the same quarter a year ago. The region was negatively impacted by safety-related disruptions, which resulted in lost production of approximately 19,000oz, coupled with the slow ramp-up to production subsequent to the year-end break. The all-in sustaining costs for the region at $975/oz during the quarter reflects a 14% improvement compared to $1,129/oz during the same period a year ago. Overall performance of Ore Reserve Development (ORD) from the region was impacted during the quarter as a result of the stoppages, particularly at Mponeng and Kopanang.
At the West Wits operations, the first quarter performance was adversely affected by a continued increase in seismic activity and safety stoppages. Production for the first quarter was 128,000oz at total cash cost of $735/oz compared to 151,000oz at $845/oz achieved a year ago. The 13% decrease in cash costs for the West Wits operations is testimony to the vigorous cost optimisation measures that have been implemented. Mponeng reflected a 29% rise in yield compared to the same quarter last year as a result of targeting reduced stope-widths and reduced intake of waste tonnages, which increased overall grade.
Vaal River operations saw a decrease in production in the first quarter to 102,000oz at a total cash cost of $851/oz compared to the 114,000oz at a total cash cost of $1,014/oz a year ago. Kopanang was hardest hit as production was severely impacted by safety stoppages by the regulator on the back of engineering constraints and a power outage from the Eskom main substation. Moab Khotsong once again saw an increase in average recovered grade. This favourable yield was achieved through a reduction in dilution due to a decrease in stope width and higher average reef grade being mined. Despite the decline in production, costs were closely managed. Moab Khotsong was the lowest cost producer for the South African region at a total cash cost of $646/oz and all-in sustaining cost of $802/oz.
Production at Surface operations in the first quarter was 60,000oz at a total cash cost of $836/oz, compared to 63,000oz at $805/oz a year ago. The operations were negatively affected by severe rainfalls and load shedding by Eskom. Grades reflected minimal improvement specifically at Mine Waste Solutions where operations shifted to reclamation sites with lower gold recovery rates. Inclement weather conditions, logistical and safety challenges were encountered with the commissioning of the uranium circuit at Mine Waste Solutions, which will not only allow uranium production, but also improve gold recovery rates. The commissioning is now scheduled to be completed in the second quarter of 2014.
The Continental Africa Region production during the first quarter was 374,000oz at a total cash cost $808/oz, with production 36% higher than the same quarter last year (17% higher excluding Kibali). The all- in sustaining costs for the region were $1,042/oz.
March 2014 Quarterly Report - www.AngloGoldAshanti.com 6 WorldReginfo - 151229a5-2fa8-4a9a-9559-9c836edee9ed In Ghana, Obuasi’s production was 53,000oz at a total cash cost of $1,234/oz, compared to 49,000oz at a total cash cost of $1,742/oz a year ago reflecting an improvement in tonnage throughput. Operations during the quarter experienced extended power interruptions which limited access to higher grade areas. Total cash costs saw the benefit of cost savings, particularly on labour rationalisation. Iduapriem’s production was 45,000oz at a total cash cost of $716/oz, compared to 41,000oz a year ago. Total cash costs decreased by 32% to $716/oz compared to $1,052 in the same quarter a year ago, mainly due to lower volumes being mined and an increase in the processing of stockpiled ore. At Geita, in Tanzania, production in the first quarter was 106,000oz compared to 66,000oz in the same quarter a year ago, when production was affected by the replacement of the SAG mill. While production was, however, impacted by downtime associated with SAG and Ball mill relining work, this work was done in less time than anticipated, allowing for strong reported tonnage throughput together with consistent high recovery and feed grade. Total cash costs at $631/oz benefited from lower mining contractor costs. In the Republic of Guinea, Siguiri’s production was 70,000oz at a total cash cost of $800/oz compared to 62,000oz at $998/oz in the same quarter a year ago. The operation has achieved its ninth consecutive quarter of exceeding planned quarterly production targets as it continues to focus on improved planning to increase volumes and achieve further cost savings resulting from improved operating efficiencies. In the DRC, Kibali’s production was 51,000oz at a total cash cost of $538/oz. Production is 28% higher than the previous quarter as a result of a 51% increase in tonnage throughput as the operation continues to ramp up to capacity after commissioning in the previous quarter. In the Americas, production during the first quarter was 236,000oz, at total cash cost of $668/oz compared to 234,000oz at a total cash costs of $668/oz a year ago. In Brazil, AngloGold Ashanti Mineração production was 94,000oz at a total cash cost of $619/oz in the first quarter of 2014 compared to 92,000oz at $689/oz in the same quarter a year ago. At Cuiabá, which is a part of the AngloGold Ashanti Mineração complex, higher grades helped to offset the lower tonnage rates that were a result of fleet availability constraints and disruptions following the fatal accident at the mine. Total cash costs benefited from lower cost of equipment maintenance and general expenses as a result of work associated with Project 500. Serra Grande maintained production at 32,000oz at a total cash cost of $799/oz compared to a year ago.
Production at Cripple Creek & Victor, in the US, was 52,000oz at a total cash costs of $699/oz compared to 55,000oz at total cash cost of $643/oz a year ago. The lower production and higher costs can be attributed to lower grades and a slight decrease in the strip ratio. Stockpiling continues at the operation with both leach grade and mill grade material, to ensure that production can commence at the mill as soon as it is online. Approximately 383k tons of ~0.06oz/t has been stockpiled year to date for the mill.
In Argentina, Cerro Vanguardia´s production was 58,000oz at total cash cost of $644/oz compared to 55,000oz at $583/oz in the same quarter a year ago. Costs at the operation have benefitted from lower service and maintenance costs and lower consumption of chemicals and other materials; however this was more than offset by lower by-product credits and an increase in local inflation. The Australasia region produced 155,000oz at a total cash cost of $779/oz compared to 61,000oz at a total cash cost of $1,302/oz a year ago significantly benefitting from the Tropicana ramp-up. The all-in sustaining cost for the region was $929/oz. At Sunrise Dam, production was 71,000oz at a total cash cost of $1,066/oz compared to 61,000oz at $1,247/oz a year ago. The quarter experienced favourable mill throughput and recovery rates, with the mine now operating exclusively underground. A total of 168m of underground capital development and 2,347m of operational development were completed during the quarter. Four RC rigs were operating underground, producing positive results to support a large bulk-mining opportunity of approximately 3g/t, for 2014 and beyond; two stopes of approximately 200,000t and 175,000t were identified. The underground ore production for the month of March was 211,000t, surpassing 200,000t for the first time, whilst mill throughput averaged 10,156 t/day, with a recovery rate of 87.2%. At Tropicana, despite wet weather conditions, production progressed well, delivering 84,000oz at a total cash cost of $495/oz. As planned, production was 27% higher than the 66,000oz produced in the previous quarter, with commensurate cost benefit. The processing plant achieved the commissioning ramp-up target
March 2014 Quarterly Report - www.AngloGoldAshanti.com 7 WorldReginfo - 151229a5-2fa8-4a9a-9559-9c836edee9ed of 95% availability at design ore throughput levels within six months, as planned. Major rainfall flooded a portion of the mine access road during the quarter, but alternative road access was arranged without any loss of production. Tropicana is a joint venture between 70% AngloGold Ashanti and 30% Independence Group NL. Production for the first three years is expected to be between 470,000oz and 490,000oz. Total cash costs are estimated at between A$590/oz and A$630/oz. Mineral resources and ore reserves are 2.6Moz and 5.4Moz, respectively. EXPLORATION Total expensed exploration and evaluation costs (including technology) during the first quarter, inclusive of expenditure at equity accounted joint ventures, was $34m ($8m on Brownfield, $12m on Greenfield and $14m on pre-feasibility studies), compared with $92m during the same quarter the previous year. Greenfields exploration activities were undertaken in three countries; Australia, Colombia and Guinea, while minor work was also completed in Brazil. In Colombia, exploration continued at the Nuevo Chaquiro target, Quebradona project, in joint venture with B2Gold (AngloGold Ashanti 86.2%). In January drilling was restarted with a single diamond drilling rig, continuing to deepen CHA-48 to a final depth of 1500m. A significant zone of mineralisation was intersected over 800m downhole with intense disseminations and veins of chalcopyrite associated with an early quartz diorite intrusive. Hole CHA-49 drilled in the opposite direction on another target intersected over 400m of less intense mineralisation. A second diamond rig has been mobilised to site to test the northwest extension of the mineralised zone intersected in hole CHA-48. Regional evaluations and reconnaissance continues on AGA’s large tenement package in Colombia. In Australia, airborne EM surveys were completed early in the first quarter at the Tropicana JV (AngloGold Ashanti 70%), the results of which have identified two priority bedrock conductors which will be followed up with ground EM and drilling. Further encouraging results were returned from the first pass diamond drilling at Madras prospect approximately 25km south of the Tropicana Gold Mine. Follow-up RC, diamond and aircore drilling programs are being designed for execution in the second quarter 2014. At the Nyngan JV (AngloGold Ashanti 70% of earnings), induced polarisation (IP) geophysical surveying was completed over a third target area during the quarter. Processing and interpretation of the IP results is now complete for the three targets surveyed to date. Access negotiations with local land owners continue ahead of planned ground geophysics (IP) scheduled for the second quarter. In South Africa, four deep surface drilling sites were in operation during the quarter, one on the Moab Khotsong Mine and three at Mponeng (WUDLs). Percussion drilling commenced for MZA10 and the hole is currently at 402m. This hole is targeted to provide value information in the lower reaches of the early gold portion of Project Zaaiplaats. At UD51, the long deflection design to intersect the VCR was completed and intersected thin VCR. Short deflection drilling has commenced. Redrill at UD59 has advanced to 2,349.8m and at UD60 to 1,412.7m. Pilot drilling (656m) has been completed at UD58 and site establishment has started with rigging commencing early in the next quarter. In Tanzania at Geita Gold Mine drilling focused on infill drilling programs for Nyankanga Cut 8, Geita Hill West and Geita Hill East. A total of 6,292m were drilled. A series of very thick high grade intersection were obtained from Matandani area and work is ongoing to understand the full upside implications of these intersections. In Guinea, exploration work continued in Blocks 2,3 and 4 (AngloGold Ashanti 85%) with 3,269m of reverse circulation drilling and 73.8 km of IP surveying completed at Kounkoun (Block 3) and 1,237m of reconnaissance diamond drilling completed at Kouremale (Block 4). At Kounkoun, drilling aimed to test the continuity of mineralisation between KK1 and KK2 along the turbidite/chlorite-magnetite-shale contact. The drilling in this KK1-KK2 Gap showed significant encouraging results. At Kouremale, drilling tested north-striking structural features delineated by IP and geochemical surveys. The results at Kouremale were disappointing and no further work will be required on those targets. Field work on Block 2 consisted of surface mapping of a newly discovered gold occurrence. Detailed information on the exploration activities and studies both for brownfields and greenfields is available on the AngloGold Ashanti website (www.anglogoldashanti.com).
March 2014 Quarterly Report - www.AngloGoldAshanti.com 8 WorldReginfo - 151229a5-2fa8-4a9a-9559-9c836edee9ed OUTLOOK Gold production for the second quarter of 2014 is estimated at 1,020koz to 1,060koz. Total cash costs are estimated at between $830/oz to $865/oz at an average exchange rate of R10.64/$, BRL2.28/$, A$0.93/$ and AP8.15/$ and brent at $105/barrel. Both production and cost estimates assume no labour interruptions, together with the ongoing successful ramp-up at Kibali and Tropicana, and no changes to asset portfolio / operating mines. Other known or unpredictable factors could also have material adverse effects on our future results. Please refer to the Risk Factors section in AngloGold Ashanti’s Form 20-F for the year ended 31 December 2013 that was filed with the United States Securities and Exchange Commission (“SEC”) on 14 April 2014 and available on the SEC’s homepage at http://www.sec.gov.
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Quarter Quarter Quarter Year ended ended ended ended March December March December 2014 2013 2013 2013
US Dollar million Notes Reviewed Reviewed Reviewed Audited Revenue 2 1,359 1,474 1,518 5,708
Gold income 2 1,324 1,418 1,463 5,497 Cost of sales 3 (1,012) (1,042) (1,029) (4,146) (Loss) gain on non-hedge derivatives and other commodity contracts (16) 28 - 94 Gross profit 296 404 434 1,445 Corporate administration, marketing and other expenses (25) (37) (65) (201) Exploration and evaluation costs (30) (41) (79) (255) Other operating expenses 4 (5) (1) (1) (19) Special items 5 (7) (90) (25) (3,410) Operating profit (loss) 229 235 264 (2,440) Dividends received 2 - - 5 5 Interest received 2 6 15 6 39 Exchange (loss) gain (6) 4 (4) 14 Finance costs and unwinding of obligations 6 (71) (75) (64) (296) Fair value adjustment on $1.25bn bonds (70) (12) - (58) Fair value adjustment on option component of convertible bonds - - 9 9 Fair value adjustment on mandatory convertible bonds - - 137 356 Share of associates and joint ventures' profit (loss) 7 19 4 (7) (162) Profit (loss) before taxation 107 171 346 (2,533) Taxation 8 (62) (426) (98) 333 Profit (loss) for the period 45 (255) 248 (2,200)
Allocated as follows: Equity shareholders 39 (305) 239 (2,230) Non-controlling interests 6 50 9 30 45 (255) 248 (2,200)
Basic earnings (loss) per ordinary share (cents) (1) 10 (75) 62 (568) Diluted earnings (loss) per ordinary share (cents) (2) 10 (75) 27 (631)
(1) Calculated on the basic weighted average number of ordinary shares. (2) Calculated on the diluted weighted average number of ordinary shares.
Rounding of figures may result in computational discrepancies.
The reviewed financial statements for the three months ended 31 March 2014 have been prepared by the corporate accounting staff of AngloGold Ashanti Limited headed by Mr John Edwin Staples, the Group's Chief Accounting Officer. This process was supervised by Mr Richard Duffy, the Group's Chief Financial Officer and Mr Srinivasan Venkatakrishnan, the Group's Chief Executive Officer. The financial statements for the quarter ended 31 March 2014 were reviewed, but not audited, by the Group's statutory auditors, Ernst & Young Inc. A copy of their unmodified review report is available for inspection at the company's head office.
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Quarter Quarter Quarter Year ended ended ended ended March December March December 2014 2013 2013 2013
US Dollar million Reviewed Reviewed Reviewed Audited Profit (loss) for the period 45 (255) 248 (2,200)
Items that will be reclassified subsequently to profit or loss: Exchange differences on translation of foreign operations (8) (85) (149) (433) Share of associates and joint ventures other comprehensive income 1 - - -
Net gain (loss) on available-for-sale financial assets 9 - (14) (23) Release on impairment of available-for-sale financial assets (note 5) - 1 12 30 Release on disposal of available-for-sale financial assets - - - (1) Cash flow hedges - 1 - 1 Deferred taxation thereon (4) - 2 2 5 2 - 9 Items that will not be reclassified subsequently to profit or loss: Actuarial gain recognised 10 52 - 69 Deferred taxation thereon (2) (15) - (20)
8 37 - 49
Other comprehensive income (loss) for the period, net of tax 6 (46) (149) (375)
Total comprehensive income (loss) for the period, net of tax 51 (301) 99 (2,575)
Allocated as follows: Equity shareholders 45 (351) 90 (2,605) Non-controlling interests 6 50 9 30 51 (301) 99 (2,575)
Rounding of figures may result in computational discrepancies.
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As at As at As at March December March 2014 2013 2013
US Dollar million Notes Reviewed Audited Reviewed
ASSETS
Non-current assets Tangible assets 4,885 4,815 7,743 Intangible assets 269 267 321 Investments in associates and joint ventures 1,391 1,327 1,172 Other investments 141 131 147 Inventories 617 586 647 Trade and other receivables 25 29 48 Deferred taxation 169 177 93 Cash restricted for use 37 31 29 Other non-current assets 50 41 7 7,584 7,404 10,207 Current assets Other investments 1 1 - Inventories 1,016 1,053 1,196 Trade and other receivables 380 369 466 Cash restricted for use 14 46 34 Cash and cash equivalents 525 648 680 1,936 2,117 2,376 Non-current assets held for sale 15 158 153 - 2,094 2,270 2,376
TOTAL ASSETS 9,678 9,674 12,583
EQUITY AND LIABILITIES
Share capital and premium 11 7,024 7,006 6,752 Accumulated losses and other reserves (3,884) (3,927) (1,204) Shareholders' equity 3,140 3,079 5,548 Non-controlling interests 35 28 21 Total equity 3,175 3,107 5,569
Non-current liabilities Borrowings 3,569 3,633 2,844 Environmental rehabilitation and other provisions 1,013 963 1,174 Provision for pension and post-retirement benefits 152 152 205 Trade, other payables and deferred income 14 4 2 Derivatives - - 1 Deferred taxation 579 579 1,063 5,327 5,331 5,289 Current liabilities Borrowings 235 258 662 Trade, other payables and deferred income 793 820 929 Bank overdraft 22 20 - Taxation 67 81 134 1,117 1,179 1,725 Non-current liabilities held for sale 15 59 57 - 1,176 1,236 1,725
Total liabilities 6,503 6,567 7,014
TOTAL EQUITY AND LIABILITIES 9,678 9,674 12,583
Rounding of figures may result in computational discrepancies.
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Quarter Quarter Quarter Year ended ended ended ended March December March December 2014 2013 2013 2013
US Dollar million Reviewed Reviewed Reviewed Audited Cash flows from operating activities Receipts from customers 1,288 1,479 1,492 5,709 Payments to suppliers and employees (905) (1,039) (1,084) (4,317) Cash generated from operations 383 440 408 1,392 Dividends received from joint ventures - - 8 18 Taxation refund 37 22 - 23 Taxation paid (70) (31) (60) (187) Net cash inflow from operating activities 350 431 356 1,246
Cash flows from investing activities Capital expenditure (220) (372) (384) (1,501) Interest capitalised and paid - - (4) (5) Expenditure on intangible assets - (17) (13) (68) Proceeds from disposal of tangible assets - 2 - 10 Other investments acquired (26) (18) (32) (91) Proceeds from disposal of other investments 24 15 27 81 Investments in associates and joint ventures (40) (78) (150) (472) Proceeds from disposal of associates and joint ventures - - 5 6 Loans advanced to associates and joint ventures (4) (14) - (41) Loans repaid by associates and joint ventures - - - 33 Dividends received - - 5 5 Proceeds from disposal of subsidiary - - 1 2 Reclassification of cash balances to held for sale assets (1) 3 - (2) Decrease (increase) in cash restricted for use 26 (13) - (20) Interest received 4 10 4 23 Net cash outflow from investing activities (237) (482) (541) (2,040)
Cash flows from financing activities Proceeds from borrowings 15 238 146 2,344 Repayment of borrowings (171) (260) (95) (1,486) Finance costs paid (81) (42) (37) (200) Revolving credit facility and bond transaction costs - (2) (5) (36) Dividends paid - (11) (2 6) (62) Net cash (outflow) inflow from financing activities (237) (77) (17) 560
Net decrease in cash and cash equivalents (124) (128) (202) (234) Translation (1) (5) (10) (30) Cash and cash equivalents at beginning of period 628 761 892 892 Cash and cash equivalents at end of period (1) 503 628 680 628
Cash generated from operations Profit (loss) before taxation 107 171 346 (2,533) Adjusted for: Movement on non-hedge derivatives and other commodity contracts 16 (28) - (94) Amortisation of tangible assets 175 202 213 775 Finance costs and unwinding of obligations 71 75 64 296 Environmental, rehabilitation and other expenditure 8 (37) (8) (66) Special items 6 88 30 3,399 Amortisation of intangible assets 9 9 2 24 Fair value adjustment on $1.25bn bonds 70 12 - 58 Fair value adjustment on option component of convertible bonds - - (9) (9) Fair value adjustment on mandatory convertible bonds - - (137) (356) Interest received (6) (15) (6) (39) Share of associates and joint ventures' (profit) loss (19) (4) 7 162 Other non-cash movements 13 7 4 25 Movements in working capital (67) (40) (98) (250) 383 440 408 1,392
Movements in working capital Increase in inventories (10) (26) (39) (142) (Increase) decrease in trade and other receivables (36) 20 18 69 Decrease in trade, other payables and deferred income (21) (34) (77) (177) (67) (40) (98) (250)
(1) The cash and cash equivalents balance at 31 March 2014 includes a bank overdraft included in the statement of financial position as part of current liabilities of $22m (31 December 2013 : $20m) Rounding of figures may result in computational discrepancies.
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Equity holders of the parent
Share Cash Available Foreign
capital Other Accumu- flow for Actuarial currency Non-
and capital lated hedge sale (losses) translation controlling Total
US Dollar million premium reserves losses reserve reserve gains reserve Total interests equity
Balance at 31 December 2012 6,742 177 (806) (2) 13 (89) (562) 5,473 21 5,494
Profit for the period 239 239 9 248
Other comprehensive loss (149) (149) (149)
Total comprehensive income (loss) - - 239 - - - (149) 90 9 99
Shares issued 10 10 10 Share-based payment for share awards net of exercised (4) (4) (4)
Dividends paid (21) (21) (21)
Dividends of subsidiaries - (9) (9)
Translation (11) 5 (1) 7 - -
Balance at 31 March 2013 6,752 162 (583) (2) 12 (82) (711) 5,548 21 5,569
Balance at 31 December 2013 7,006 136 (3,061) (1) 18 (25) (994) 3,079 28 3,107
Profit for the period 39 39 6 45
Other comprehensive income (loss) 1 5 8 (8) 6 6
Total comprehensive income (loss) - 1 39 - 5 8 (8) 45 6 51
Shares issued 18 18 18
Share-based payment for share awards net of exercised (2) (2) (2)
Translation 1 (2) (1) 1 -
Balance at 31 March 2014 7,024 136 (3,024) (1) 23 (17) (1,002) 3,140 35 3,175
Rounding of figures may result in computational discrepancies.
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AngloGold Ashanti’s operating segments are being reported based on the financial information provided to the Chief Executive Officer and the Executive Committee, collectively identified as the Chief Operating Decision Maker (CODM). Individual members of the Executive Committee are responsible for geographic regions of the business.
Quarter ended Year ended Mar Dec Mar Dec 2014 2013 2013 2013
Reviewed Reviewed Reviewed Audited US Dollar million Gold income South Africa 372 428 507 1,810 Continental Africa 532 568 535 2,111 Australasia 215 192 94 441 Americas 310 335 395 1,425 1,429 1,523 1,532 5,787 Equity-accounted investments included above (105) (105) (69) (290) 1,324 1,418 1,463 5,497
Gross profit (loss) South Africa 44 134 154 510 Continental Africa 119 117 129 475 Australasia 59 30 3 (9) Americas 92 125 177 516 Corporate and other (1) 5 (5) - 313 410 457 1,492 Equity-accounted investments included above (17) (6) (23) (47) 296 404 434 1,445
Capital expenditure South Africa 51 112 101 451 Continental Africa 127 212 208 839 Australasia 27 35 101 285 Americas 69 116 98 410 Corporate and other - 2 4 8 274 477 512 1,993 Equity-accounted investments included above (53) (94) (97) (411) 221 383 415 1,582
Quarter ended Year ended Mar Dec Mar Dec 2014 2013 2013 2013
Reviewed Reviewed Reviewed Audited oz (000) Gold production South Africa 290 339 327 1,302 Continental Africa 374 460 276 1,460 Australasia 155 169 61 342 Americas 236 262 234 1,001 1,055 1,229 899 4,105
As at As at As at Mar Dec Mar 2014 2013 2013
Reviewed Audited Reviewed US Dollar million Total assets (1) South Africa 2,311 2,325 2,841 Continental Africa 3,478 3,391 5,092 Australasia 1,059 1,108 1,143 Americas 2,263 2,203 2,880 Corporate and other 567 647 627 9,678 9,674 12,583
(1) During the 2013 year, pre tax impairments, derecognition of goodwill, tangible assets and intangible assets of $3,029m were accounted for in South Africa ($311m), Continental Africa ($1,776m) and the Americas ($942m).
Rounding of figures may result in computational discrepancies.
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Notes for the quarter ended 31 March 2014
1. Basis of preparation
The financial statements in this quarterly report have been prepared in accordance with the historic cost convention except for certain financial instruments which are stated at fair value. The group’s accounting policies used in the preparation of these financial statements are consistent with those used in the annual financial statements for the year ended 31 December 2013 except for the adoption of new standards and interpretations effective 1 January 2014 (note 14).
The financial statements of AngloGold Ashanti Limited have been prepared in compliance with IAS 34, IFRS as issued by the International Accounting Standards Board, the South African Institute of Chartered Accountants Financial Reporting Guides as issued by the Accounting Practices Committee, Financial Reporting Pronouncements as issued by Financial Reporting Standards Council, JSE Listings Requirements and in the manner required by the South African Companies Act, 2008 (as amended) for the preparation of financial information of the group for the quarter ended 31 March 2014.
2. Revenue
Quarter ended Year ended Mar Dec Mar Dec 2014 2013 2013 2013 Reviewed Reviewed Reviewed Audited US Dollar million Gold income 1,324 1,418 1,463 5,497 By-products (note 3) 29 39 34 149 Dividends received - -5 5 Royalties received (note 5) 1 1 10 18 Interest received 6 15 6 39 1,359 1,474 1,518 5,708
3. Cost of sales
Quarter ended Year ended Mar Dec Mar Dec 2014 2013 2013 2013 Reviewed Reviewed Reviewed Audited US Dollar million Cash operating costs 762 858 785 3,274 By-products revenue (note 2) (29) (39) (34) (149) 733 819 751 3,125 Royalties 37 32 37 129 Other cash costs 8 10 9 43 Total cash costs 778 861 797 3,297 Retrenchment costs 6 16 6 69 Rehabilitation and other non-cash costs 22 (11) 11 18 Production costs 806 866 814 3,384 Amortisation of tangible assets 175 202 213 775 Amortisation of intangible assets 9 92 24 Total production costs 990 1,077 1,029 4,183 Inventory change 22 (35) - (37) 1,012 1,042 1,029 4,146
4. Other operating expenses
Quarter ended Year ended Mar Dec Mar Dec 2014 2013 2013 2013 Reviewed Reviewed Reviewed Audited US Dollar million Pension and medical defined benefit provisions 2 (1) 4 14 Claims filed by former employees in respect of loss of employment, work-related accident injuries and diseases, governmental fiscal claims and care and maintenance of old tailings operations 3 2(3) 5 5 11 19
Rounding of figures may result in computational discrepancies.
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5. Special items
Quarter ended Year ended Mar Dec Mar Dec 2014 2013 2013 2013 Reviewed Reviewed Reviewed Audited US Dollar million Net impairment and derecognition of goodwill, tangible assets and intangible assets (note 9) - 36 1 3,029 Impairment of other investments (note 9) - 1 12 30 Net loss (profit) on disposal and derecognition of land, mineral rights, tangible assets and exploration properties (note 9) 2 -1 (2) Royalties received (note 2) (1) (1) (10) (18) Indirect tax expenses and legal claims - 73 43 Inventory write-off due to fire at Geita - - 14 14 Insurance proceeds on Geita claim - (13) - (13) Legal fees and other costs related to contract termination and settlement costs 6 16 4 19 Write-down of stockpiles and heap leach to net realisable value and other stockpile adjustments - 38 - 216 Retrenchment and related costs - 4- 24 Write-off of a loan - -- 7 Costs on early settlement of convertible bonds and transaction costs on the $1.25bn bond and standby facility - 2- 61 7 90 25 3,410
For the quarter ended 31 March 2014, no asset impairments were recognised. During the year ended 31 December 2013, impairment, derecognition of assets and write-down of inventories to net realisable value and other stockpile adjustments include the following:
The group reviews and tests the carrying value of its mining assets (including ore-stock piles) when events or changes in circumstances suggest that the carrying amount may not be recoverable.
During June 2013, consideration was given to a range of indicators including a decline in gold price, increase in discount rates and reduction in market capitalisation. As a result, certain cash generating units’ recoverable amounts, including Obuasi and Geita in Continental Africa, Moab Khotsong in South Africa and CC&V and AGA Mineração in the Americas, did not support their carrying values and impairment losses were recognised during 2013. The impairment for these cash generating units represents 80% of the total impairment and range between $200m and $700m per cash generating unit on a post taxation basis.
The indicators were re-assessed as at 31 December 2013 as part of the annual impairment assessment cycle and the conditions that arose in June 2013 were largely unchanged and no further cash generating unit impairments arose.
Investments in equity- accounted associates Inventory Pre- Tangible Intangible and joint write-down and tax Post- Goodwill asset asset Asset ventures other stockpile sub Taxation tax impairment impairment impairment derecognition(1) impairment adjustments total thereon total US Dollar million South Africa - 308 - 3 - 1 312 (86) 226 Continental Africa - 1,651 20 105 179 200 2,155 (564) 1,591 Americas 15 910 16 1 - 15 957 (333) 624 Corporate and other - - - - 16 - 16 - 16 15 2,869 36 109 195 216 3,440 (983)2,457
(1) The Mongbwalu project in the Democratic Republic of the Congo was discontinued.
Impairment calculation assumptions as at 31 December 2013 – goodwill, tangible and intangible assets
Management assumptions for the value in use of tangible assets and goodwill include: the gold price assumption represents management’s best estimate of the future price of gold. A long-term real gold price of $1,269/oz (2012: $1,584/oz) is based on a range of economic and market conditions that will exist over the remaining useful life of the assets.
Annual life of mine plans take into account the following: proved and probable Ore Reserve; value beyond proved and probable reserves (including exploration potential) determined using the gold price assumption referred to above; In determining the impairment, the real pre-tax rate, per cash generating unit ranged from 6.21% to 18.07% which was derived from the group’s weighted average cost of capital (WACC) and risk factors consistent with the basis used in 2012. At 31 December 2013, the group WACC was 7.30% (real post-tax) which is 204 basis points higher than in 2012 of 5.26%, and is based on the average capital structure of the group and three major gold companies considered to be appropriate peers. In determining the WACC for each cash generating unit, sovereign and mining risk factors are considered to determine country specific risks. Project risk has been applied to cash flows relating to certain mines that are deep level underground mining projects below infrastructure in South Africa and Continental Africa region; foreign currency cash flows translated at estimated forward exchange rates and then discounted using appropriate discount rates for that currency; cash flows used in impairment calculations are based on life of mine plans which range from 3 years to 47 years; and variable operating cash flows are increased at local Consumer Price Index rates.
Rounding of figures may result in computational discrepancies.
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Impairment calculation assumptions – Investments in equity-accounted associates and joint ventures
The impairment indicators considered the quoted share price, current financial position and decline in anticipated operating results. Included in share of equity-accounted investments’ loss of $162m for the year ended 31 December 2013 is an impairment of $195m and an impairment reversal of $31m.
Net realisable value calculation assumptions as at 31 December 2013 – Inventory
Impairments of $178m were raised at 30 June 2013 to net realisable value based on a spot price of $1,200. Additional impairments of $38m were raised at 31 December 2013 due to stockpile abandonments and other specific adjustments. The practice of writing down inventories to the lower of cost or net realisable value is consistent with the view that assets should not be carried in excess of amounts expected to be realised from their sale or use.
6. Finance costs and unwinding of obligations
Quarter ended Year ended Mar Dec Mar Dec 2014 2013 2013 2013 Reviewed Reviewed Reviewed Audited US Dollar million Finance costs 64 67 49 247 Unwinding of obligations, accretion of convertible bonds and other discounts 7 8 15 49 71 75 64 296
7. Share of associates and joint ventures’ profit (loss)
Quarter ended Year ended Mar Dec Mar Dec 2014 2013 2013 2013 Reviewed Reviewed Reviewed Audited US Dollar million Revenue 117 117 80 334 Operating costs, special items and other expenses (99) (111) (71) (315) Net interest received 2 1- 4 Profit before taxation 20 79 23 Taxation (1) (2) (9) (21) Profit after taxation 19 5- 2 Net impairment of investments in associates and joint ventures (note 9) - (1) (7) (164) 19 4(7) (162)
8. Taxation
Quarter ended Year ended Mar Dec Mar Dec 2014 2013 2013 2013 Reviewed Reviewed Reviewed Audited US Dollar million South African taxation Mining tax 14 1 17 7 Non-mining tax (3) -- 1 Prior year over provision (2) (25) (1) (26) Deferred taxation Temporary differences (20) 13 10 (39) Unrealised non-hedge derivatives and other commodity contracts (4) 8- 25 (15) (3) 25 (32)
Foreign taxation Normal taxation 46 96 54 160 Prior year over provision (3) -- (8) Deferred taxation(1) Temporary differences 33 333 17 (453) 77 429 72 (301)
62 426 98 (333)
(1) Included in temporary differences under Foreign taxation in 2013, is a tax credit relating to impairments, derecognition of assets of $915m and write- down of inventories of $68m. In addition, in quarter four of 2013, deferred tax assets of $270m and $60m were derecognised in Obuasi and CC&V respectively.
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9. Headline earnings (loss)
Quarter ended Year ended Mar Dec Mar Dec 2014 2013 2013 2013 Reviewed Reviewed Reviewed Audited US Dollar million The profit (loss) attributable to equity shareholders has been adjusted by the following to arrive at headline (loss) earnings: Profit (loss) attributable to equity shareholders 39 (305) 239 (2,230) Net impairment and derecognition of goodwill, tangible assets and intangible assets (note 5) - 36 1 3,029 Net loss (profit) on disposal and derecognition of land, mineral rights, tangible assets and exploration properties (note 5) 2 -1 (2) Impairment of other investments (note 5) - 1 12 30 Net impairment of investments in associates and joint ventures (note 7) - 1 7 164 Special items of associates and joint ventures - 2- 2 Taxation - current portion - 1- - Taxation - deferred portion (3) (12) (1) (915) 38 (276) 259 78
Headline earnings (loss) per ordinary share (cents) (1) 9 (68) 67 20 Diluted headline earnings (loss) per ordinary share (cents) 9 (68) 32 (62)
(1) Calculated on the basic weighted average number of ordinary shares.
10. Number of shares
Quarter ended Year ended Mar Dec Mar Dec 2014 2013 2013 2013 Reviewed Reviewed Reviewed Audited Authorised number of shares: Ordinary shares of 25 SA cents each 600,000,000 600,000,000 600,000,000 600,000,000 E ordinary shares of 25 SA cents each 4,280,000 4,280,000 4,280,000 4,280,000 A redeemable preference shares of 50 SA cents each 2,000,000 2,000,000 2,000,000 2,000,000 B redeemable preference shares of 1 SA cent each 5,000,000 5,000,000 5,000,000 5,000,000
Issued and fully paid number of shares: Ordinary shares in issue 403,087,362 402,628,406 383,626,668 402,628,406 E ordinary shares in issue 697,896 712,006 1,610,376 712,006 Total ordinary shares: 403,785,258 403,340,412 385,237,044 403,340,412 A redeemable preference shares 2,000,000 2,000,000 2,000,000 2,000,000 B redeemable preference shares 778,896 778,896 778,896 778,896
In calculating the basic and diluted number of ordinary shares outstanding for the period, the following were taken into consideration:
Ordinary shares 402,785,093 402,462,266 383,423,554 389,184,639 E ordinary shares 704,108 1,062,510 1,613,092 1,460,705 Fully vested options 2,477,845 1,477,629 2,038,229 1,979,920 Weighted average number of shares 405,967,046 405,002,405 387,074,875 392,625,264 Dilutive potential of share options 1,185,208 - 1,210,482 - Dilutive potential of convertible bonds - - 18,140,000 12,921,644 Diluted number of ordinary shares 407,152,254 405,002,405 406,425,357 405,546,908
11. Share capital and premium
As at Mar Dec Mar 2014 2013 2013 Reviewed Audited Reviewed US Dollar Million Balance at beginning of period 7,074 6,821 6,821 Ordinary shares issued 13 259 11 E ordinary shares issued and cancelled - (6) - Sub-total 7,087 7,074 6,832 Redeemable preference shares held within the group (53) (53) (53) Ordinary shares held within the group - (6) (11) E ordinary shares held within the group (10) (9) (16) Balance at end of period 7,024 7,006 6,752
Rounding of figures may result in computational discrepancies.
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12. Exchange rates
Mar Dec Mar 2014 2013 2013 Unaudited Unaudited Unaudited ZAR/USD average for the year to date 10.82 9.62 8.91 ZAR/USD average for the quarter 10.82 10.12 8.91 ZAR/USD closing 10.52 10.45 9.21
AUD/USD average for the year to date 1.12 1.03 0.96 AUD/USD average for the quarter 1.12 1.08 0.96 AUD/USD closing 1.08 1.12 0.96
BRL/USD average for the year to date 2.36 2.16 2.00 BRL/USD average for the quarter 2.36 2.27 2.00 BRL/USD closing 2.26 2.34 2.01
ARS/USD average for the year to date 7.60 5.48 5.01 ARS/USD average for the quarter 7.60 6.07 5.01 ARS/USD closing 8.00 6.52 5.12
13. Capital commitments
Mar Dec Mar 2014 2013 2013 Reviewed Audited Reviewed US Dollar Million Orders placed and outstanding on capital contracts at the prevailing rate of exchange (1) 379 437 1,210
(1) Includes capital commitments relating to associates and joint ventures.
Rounding of figures may result in computational discrepancies.
Liquidity and capital resources
To service the above capital commitments and other operational requirements, the group is dependent on existing cash resources, cash generated from operations and borrowing facilities.
Cash generated from operations is subject to operational, market and other risks. Distributions from operations may be subject to foreign investment, exchange control laws and regulations and the quantity of foreign exchange available in offshore countries. In addition, distributions from joint ventures are subject to the relevant board approval.
The credit facilities and other finance arrangements contain financial covenants and other similar undertakings. To the extent that external borrowings are required, the group’s covenant performance indicates that existing financing facilities will be available to meet the above commitments. To the extent that any of the financing facilities mature in the near future, the group believes that sufficient measures are in place to ensure that these facilities can be refinanced.
14. Change in accounting policies
The following accounting standards, amendments to standards and new interpretations have been adopted with effect from 1 January 2014:
IFRS 10, IFRS 12 and IAS 27 Amendment – Exception from consolidation for “investment entities” IAS 32 Amendment – Financial Instruments: Presentation, offsetting financial assets and financial liabilities IAS 39 Amendment – Financial instruments, Recognition and measurement novation of derivatives and continuation of hedge accounting IFRIC 21 Levies
15. Non-current assets and liabilities held for sale
Effective 30 April 2013, AngloGold Ashanti announced its plan to sell the Navachab mine in Namibia. The Navachab gold mine is situated close to Karibib, about 170 kilometres northwest of the Namibian capital, Windhoek. It is included in the Continental Africa reporting segment. The open-pit mine, which began operations in 1989, has a processing plant that handles 120,000 metric tons a month. The mine produced 63,000 ounces of gold in 2013 (2012: 74,000 ounces).
On 10 February 2014, AngloGold Ashanti announced that it signed a binding agreement to sell Navachab to a wholly-owned subsidiary of QKR Corporation Ltd (QKR). The agreement provides for an upfront consideration based on an enterprise value of US$110 million which will be adjusted to take into account Navachab’s net debt and working capital position on the closing date of the transaction. The upfront consideration is payable in cash on the closing date. In addition, AngloGold Ashanti will receive deferred consideration in the form of a net smelter return (NSR). The NSR is to be paid quarterly for a period of seven years following the second anniversary of the closing date and will be determined at 2% of ounces sold by Navachab during a relevant quarter subject to a minimum average gold price of US$1,350 per ounce being achieved and capped at a maximum of 18,750 ounces sold per quarter.
The transaction is subject to fulfilment of a number of conditions precedent, including Namibian and South African regulatory and third party approvals, which are expected to be obtained over the next several months. Navachab is not a discontinued operation and is not viewed as part of the core assets of the company.
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16. Financial risk management activities
Borrowings The $1.25bn bonds and the mandatory convertible bonds settled in September 2013, are carried at fair value. The convertible bonds, settled 99.1% in August 2013 and in full in November 2013, and rated bonds are carried at amortised cost and their fair values are their closing market values at the reporting date. The interest rate on the remaining borrowings is reset on a short-term floating rate basis, and accordingly the carrying amount is considered to approximate fair value.
As at Mar Dec Mar 2014 2013 2013 Reviewed Audited Reviewed Carrying amount 3,804 3,891 3,506 Fair value 3,743 3,704 3,648
Derivatives The fair value of derivatives is estimated based on ruling market prices, volatilities, interest rates and credit risk and includes all derivatives carried in the statement of financial position.
Embedded derivatives and the conversion features of convertible bonds are included as derivatives on the statement of financial position.
The following inputs were used in the valuation of the conversion features of the convertible bonds:
Quarter ended Quarter ended Quarter ended Mar 2014 Dec 2013 Mar 2013 Market quoted bond price % - - 101.6 Fair value of bonds excluding conversion feature % - - 101.6 Fair value of conversion feature % - - - Total issued bond value $m - - 732.5
The option component of the convertible bonds is calculated as the difference between the price of the bonds including the option component (bond price) and the price excluding the option component (bond floor price).
Derivative assets (liabilities) comprise the following:
Assets Liabilities Assets Liabilities Assets Liabilities non- non- non- non- non- non- hedge hedge hedge hedge hedge hedge accounted accounted accounted accounted accounted accounted US Dollar million March 2014 December 2013 March 2013 Embedded derivatives - - - - - (1) Option component of convertible bonds ------Total derivatives - - - - - (1)
The group uses the following hierarchy for determining and disclosing the fair value of financial instruments:
Level 1: quote prices (unadjusted) in active markets for identical assets or liabilities; Level 2: inputs other than quoted prices included in level 1 that are observable for the asset or liability, either directly (as prices) or indirectly (derived from prices); and Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs).
The following tables set out the group’s financial assets and liabilities measured at fair value by level within the fair value hierarchy: Type of instrument
Level 1 1 Level 2 Level 3 Level Total 1 Level 2 Level 3 Level Total 1 Level 2 Level 3 Level Total US Dollar million March 2014 December 2013 March 2013 Assets measured at fair value Available-for-sale financial assets Equity securities 60 - - 60 47 - - 47 56 2 - 58 Liabilities measured at fair value Financial liabilities at fair value through profit or loss Option component of convertible bonds ------Embedded derivatives ------1 - 1 Mandatory convertible bonds ------448 - - 448 $1.25bn bonds 1,400 - - 1,400 1,353 - - 1,353 - - - -
Rounding of figures may result in computational discrepancies.
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17. Contingencies AngloGold Ashanti’s material contingent liabilities and assets at 31 March are detailed below:
Contingencies and guarantees Mar Mar 2014 2013 Reviewed Restated US Dollar million Contingent liabilities Groundwater pollution (1) - - Deep groundwater pollution – Africa (2) - - Indirect taxes – Ghana (3) 29 25 Litigation – Ghana (4) (5) (6) 97 - ODMWA litigation (7) 211 - Other tax disputes – AngloGold Ashanti Brasil Mineração Ltda (8) 38 40 Sales tax on gold deliveries – Mineração Serra Grande S.A.(9) 107 161 Other tax disputes – Mineração Serra Grande S.A.(10) 17 19 Tax dispute - AngloGold Ashanti Colombia S.A.(11) 191 156 Tax dispute - Cerro Vanguardia S.A.(12) 52 - Tax dispute – AngloGold Ashanti Ltd.(13) 8 -
Contingent assets Indemnity – Kinross Gold Corporation (14) (64) (93) Royalty – Tau Lekoa Gold Mine (15) - -
Financial Guarantees Oro Group (Pty) Limited (16) 10 11 696 319
(1) Groundwater pollution - AngloGold Ashanti Limited has identified groundwater contamination plumes at certain of its operations, which have occurred primarily as a result of seepage. Numerous scientific, technical and legal studies have been undertaken to assist in determining the magnitude of the contamination and to find sustainable remediation solutions. The group has instituted processes to reduce future potential seepage and it has been demonstrated that Monitored Natural Attenuation (MNA) by the existing environment will contribute to improvements in some instances. Furthermore, literature reviews, field trials and base line modelling techniques suggest, but have not yet proven, that the use of phyto-technologies can address the soil and groundwater contamination. Subject to the completion of trials and the technology being a proven remediation technique, no reliable estimate can be made for the obligation.
(2) Deep groundwater pollution - The group has identified a flooding and future pollution risk posed by deep groundwater in certain underground m i n e s in Africa. Various studies have been undertaken by AngloGold Ashanti Limited since 1999. Due to the interconnected nature of mining operations, any proposed solution needs to be a combined one supported by all the mines located in these gold fields. As a result, in South Africa, the Mineral and Petroleum Resources Development Act (MPRDA) requires that the affected mining companies develop a Regional Mine Closure Strategy to be approved by the Department of Mineral Resources. In view of the limitation of current information for the accurate estimation of a liability, no reliable estimate can be made for the obligation.
(3) Indirect taxes - AngloGold Ashanti (Ghana) Limited (AGAG) received a tax assessment for the 2006 to 2008 and for the 2009 to 2011 tax years following audits by the tax authorities which related to various indirect taxes amounting to $29m (2013: $25m). Management is of the opinion that the indirect taxes were not properly assessed and the company has lodged an objection.
(4) Litigation - On 11 October 2011, AGAG terminated its commercial arrangements with Mining and Building Contractors Limited (MBC) relating to certain underground development, construction on bulkheads and diamond drilling services provided by MBC in respect of the Obuasi mine. On 8 November 2012, as a result of this termination, AGAG and MBC concluded a separation agreement that specified the terms on which the parties agreed to sever their commercial relationship. On 23 July 2013, MBC commenced proceedings against AGAG in the High Court of Justice (Commercial Division) in Accra, Ghana, and served a writ of summons that claimed a total of approximately $97m in damages. MBC asserts various claims for damages, including, among others, as a result of the breach of contract, non-payment of outstanding historical indebtedness by AGAG and the demobilisation of equipment, spare parts and material acquired by MBC for the benefit of AGAG in connection with operations at the Obuasi mine in Ghana. MBC has also asserted various labour claims on behalf of itself and certain of its former contractors and employees at the Obuasi mine. On 9 October 2013, AGAG filed a motion in court to refer the action or a part thereof to arbitration. This motion was set to be heard on 25 October 2013, however, on 24 October 2013, MBC filed a motion to discontinue the action with liberty to reapply. On 20 February 2014, AGAG was served with a new writ for approximately $97m, as previously claimed. On 5 May 2014, the court dismissed AGAG’s application for stay of proceedings pending arbitration and ordered AGAG to file its statement of defence within 14 days. AGAG intends to appeal this ruling.
(5) Litigation – AGAG received a summons on 2 April 2013 from Abdul Waliyu and 152 others in which the plaintiffs allege that they were or are residents of the Obuasi municipality or its suburbs and that their health has been adversely affected by emission and/or other environmental impacts arising in connection with the current and/or historical operations of the Pompora Treatment Plant (PTP) which was decommissioned in 2000. The claim is to award general damages, special damages for medical treatment and punitive damages, as well as several orders relating to the operation of the PTP. The plaintiffs subsequently amended their writ to include their respective addresses. AGAG filed a defence to the amended writ on 16 July 2013 and are awaiting the plaintiffs to apply for directions. In view of the limitation of current information for the accurate estimation of a liability, no reliable estimate can be made for the obligation.
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(6) Litigation – five executive members of the PTP (AGA) Smoke Effect Association (PASEA) sued AGAG on 24 February 2014 in their personal capacity and on behalf of the members of PASEA. The plaintiffs claim that they were residents of Tutuka, Sampsonkrom, Anyimadukrom, Kortkortesua, Abomperkrom, and PTP Residential Quarters, all suburbs of Obuasi, in close proximity to the now decommissioned Pompara Treatment Plant (PTP). The plaintiffs claim they have been adversely affected by the operations of the PTP. In view of the limitation of current information for the accurate estimation of a liability, no reliable estimate can be made for the obligation.
(7) Occupational Diseases in Mines and Works Act (ODMWA) litigation – On 3 March 2011, in Mankayi vs. AngloGold Ashanti, the Constitutional Court of South Africa held that section 35(1) of the Compensation for Occupational Injuries and Diseases Act, 1993 does not cover an “employee” who qualifies for compensation in respect of “compensable diseases” under the Occupational Diseases in Mines and Works Act, 1973 (ODMWA). This judgement allows such qualifying employee to pursue a civil claim for damages against the employer. Following the Constitutional Court decision, AngloGold Ashanti has become subject to numerous claims relating to Silicosis and other Occupational Lung Diseases (OLD), including several potential class actions and individual claims.
For example, on or about 21 August 2012, AngloGold Ashanti was served with an application instituted by Bangumzi Bennet Balakazi ("the Balakazi Action") and others in which the applicants seek an order declaring that all mine workers (former or current) who previously worked or continue to work in specified South African gold mines for the period owned by AngloGold Ashanti and who have silicosis or other OLD constitute members of a class for the purpose of proceedings for declaratory relief and claims for damages. In the event the class is certified, such class of workers would be permitted to institute actions by way of a summons against AngloGold Ashanti for amounts as yet unspecified. On 4 September 2012, AngloGold Ashanti delivered its notice of intention to defend this application. AngloGold Ashanti also delivered a formal request for additional information that it requires to prepare its affidavits in respect to the allegations and the request for certification of a class.
In addition, on or about 8 January 2013, AngloGold Ashanti and its subsidiary Free State Consolidated Gold Mines (Operations) Limited, alongside other mining companies operating in South Africa, were served with another application to certify a class ("the Nkala Action"). The applicants in the case seek to have the court certify two classes namely: (i) current and former mineworkers who have silicosis (whether or not accompanied by any other disease) and who work or have worked on certain specified gold mines at any time from 1 January 1965 to date; and (ii) the dependants of mineworkers who died as a result of silicosis (whether or not accompanied by any other disease) and who worked on these gold mines at any time after 1 January 1965. AngloGold Ashanti filed a notice of intention to oppose the application.
On 21 August 2013, an application was served on AngloGold Ashanti, for the consolidation of the Balakazi Action and the Nkala Action, as well as a request for an amendment to change the scope of the classes the court was requested to certify in the previous applications that were initiated. The applicants now request certification of two classes (the "silicosis class” and the "tuberculosis class"). The silicosis class would consist of certain current and former mineworkers who have contracted silicosis, and the dependants of certain deceased mineworkers who have died of silicosis (whether or not accompanied by any other disease). The tuberculosis class would consist of certain current and former mineworkers who have or had contracted pulmonary tuberculosis and the dependants of certain deceased mineworkers who died of pulmonary tuberculosis (but excluding silico-tuberculosis). AngloGold Ashanti will defend against the request for certification of these classes in 2014.
In October 2012, AngloGold Ashanti received a further 31 individual summonses and particulars of claim relating to silicosis and/or other OLD. The total amount claimed in the 31 summonses is approximately $7 million. On 22 October 2012, AngloGold Ashanti filed a notice of intention to oppose these claims and took legal exception to the summonses on the ground that certain particulars of claim were unclear. On 4 April 2014, the High Court of South Africa dismissed these exceptions and on 25 April 2014, Anglogold Ashanti filed its plea in this matter. The company will continue to defend these cases on their merits.
On or about 3 March 2014, AngloGold Ashanti received an additional 21 individual summonses and particulars of claim relating to silicosis and/or other OLD. The total amount claimed in the 21 summonses is approximately $4.5 million. AngloGold Ashanti has filed a notice of intention to oppose these claims. On 2 May 2014 AngloGold Ashanti filed a notice taking legal exception to the summonses on the ground that certain particulars of claim were unclear. The court date has not yet been set to hear the exceptions.
On or about 24 March 2014, AngloGold Ashanti received a further 686 individual summonses and particulars of claim relating to silicosis and/or other OLD. The total amount claimed in the 686 summonses is approximately $109 million. AngloGold Ashanti has filed a notice of intention to oppose these claims. On 15 May 2014 AngloGold Ashanti filed a notice taking legal exception to the summonses on the ground that certain particulars of claim were unclear. The court date has not yet been set to hear the exceptions.
On or about 1 April 2014, AngloGold Ashanti received a further 518 individual summonses and particulars of claim relating to silicosis and/or other OLD. The total amount claimed in the 518 summonses is approximately $90 million. AngloGold Ashanti has filed a notice of intention to oppose these claims. On 15 May 2014 AngloGold Ashanti filed a notice taking legal exception to the summonses on the ground that certain particulars of claim were unclear. The court date has not yet been set to hear the exceptions.
It is possible that additional class actions and/or individual claims relating to silicosis and/or other OLD will be filed against AngloGold Ashanti in the future. AngloGold Ashanti will defend all current and subsequently filed claims on their merits. Should AngloGold Ashanti be unsuccessful in defending any such claims, or in otherwise favourably resolving perceived deficiencies in the national occupational disease compensation framework that were identified in the earlier decision by the Constitutional Court, such matters would have an adverse effect on its financial position, which could be material. The company is unable to reasonably estimate its share of the amounts claimed.
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(8) Other tax disputes - In November 2007, the Departamento Nacional de Produção Mineral (DNPM), a Brazilian federal mining authority, issued a tax assessment against AngloGold Ashanti Brazil Mineração Ltda (AABM) in the amount of $20m (2013: $21m) relating to the calculation and payment by AABM of the financial contribution on mining exploitation (CFEM) in the period from 1991 to 2006. AngloGold Ashanti Limited’s subsidiaries i n Brazil are involved in various other disputes with tax authorities. These disputes involve federal tax assessments including income tax, royalties, social contributions and annual property tax. The amount involved is approximately $18m (2013: $19m). Management is of the opinion that these taxes are not payable.
(9) Sales tax on gold deliveries - In 2006, Mineração Serra Grande S.A. (MSG), received two tax assessments from the State of Goiás related to payments of state sales taxes at the rate of 12% on gold deliveries for export from one Brazilian state to another during the period from February 2004 to the end of May 2006. The first and second assessments are approximately $66m (2013: $99m) and $41m (2013: $62m) respectively. In November 2006, the administrative council’s second chamber ruled in favour of MSG and fully cancelled the tax liability related to the first period. In July 2011, the administrative council’s second chamber ruled in favour of MSG and fully cancelled the tax liability related to the second period. The State of Goiás has appealed to the full board of the State of Goiás tax administrative council. In November 2011 (first case) and June 2012 (second case), the administrative council's full board approved the suspension of proceedings and the remittance of the matter to the Department of Supervision of Foreign Trade (COMEX) for review and verification. On 28 May 2013, the Full Board of the State of Goiás Tax Administrative Council ruled in favour of the State of Goiás, however reduced the penalties of the two tax assessments from 200% to 80%. The company is considering legal options available in this matter, since it believes that both assessments a r e in violation of federal legislation on sales taxes. MSG will be required to provide a bank guarantee to the tax authorities to proceed with legal discussion at the judiciary level. A decree has been signed by the Governor of the State of Goias which will enable companies to settle outstanding tax assessments. The implementing regulations are currently being drafted and MSG will be considering the options that may be open to it under the decree and implementing regulations which may result in the contingent liability referred to above being settled. Until the regulations are published and assessed by MSG it is not possible to determine any settlement value.
(10) Other tax disputes - MSG received a tax assessment in October 2003 from the State of Minas Gerais related to sales taxes on gold. The tax administrators rejected the company’s appeal against the assessment. The company is now appealing the dismissal of the case. The assessment is approximately $17m (2013: $19m).
(11) Tax dispute – AngloGold Ashanti Colombia S.A. (AGAC) received notice from the Colombian Tax Office (DIAN) that it disagreed with the company’s tax treatment of certain items in the 2011 and 2010 income tax returns. On 23 October 2013 AGAC received the official assessments from the DIAN which established that an estimated additional tax of $36m ( 2013: $25m) will be payable if the tax returns are amended. Penalties and interest for the additional taxes are expected to be $155m (2013: $131m), based on Colombian tax law. The company believes that it has applied the tax legislation correctly. AGAC requested that DIAN reconsider its decision and the company has been officially notified that DIAN will review its earlier ruling. This review is anticipated to take twelve months, at the end of which AGAC may file suit if the ruling is not reversed.
(12) Tax dispute - On 12 July 2013, Cerro Vanguardia S.A. received a notification from the Argentina Tax Authority requesting corrections to the 2007, 2008 and 2009 income tax returns of about $15m relating to the non-deduction of tax losses previously claimed on hedge contracts. Penalties and interest on the disputed amounts are estimated at a further $37m. Management is of the opinion that the taxes are not payable and is preparing a response.
(13) Tax dispute – on 7 April 2014 AngloGold Ashanti Limited received notification from the South African Revenue Service that certain corporate expenses have been disallowed. The total amount including penalties and interest is estimated at $8m and the company will be appealing against this decision.
(14) Indemnity - As part of the acquisition by AngloGold Ashanti Limited of the remaining 50% interest in MSG during June 2012, Kinross Gold Corporation (Kinross) has provided an indemnity to a maximum amount of BRL255m against the specific exposures discussed in items 8 and 9 above. At 31 December 2013, the company has estimated that the maximum contingent asset is $64m (2013: $93m).
(15) Royalty - As a result of the sale of the interest in the Tau Lekoa Gold Mine during 2010, the group is entitled to receive a royalty on the production of a total of 1.5Moz by the Tau Lekoa Gold Mine and in the event that the average monthly rand price of gold exceeds R180,000/kg (subject to an inflation adjustment).Where the average monthly rand price of gold does not exceed R180,000/kg (subject to an inflation adjustment), the ounces produced in that quarter do not count towards the total 1.5Moz upon which the royalty is payable. The royalty is determined at 3% of the net revenue (being gross revenue less state royalties) generated by the Tau Lekoa assets. Royalties on 435,986oz (2013: 331,558oz) produced have been received to date.
(16) Provision of surety - The company has provided surety in favour of a lender on a gold loan facility with its associate Oro Group (Pty) Limited and one of its subsidiaries to a maximum value of $10m (2013: $11m). The probability of the non- performance under the surety ships is considered minimal. The suretyship agreements have a termination notice period of 90 days.
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18. Concentration of tax risk
There is a concentration of tax risk in respect of recoverable value added tax, fuel duties and appeal deposits from the Tanzanian government.
The recoverable value added tax, fuel duties and appeal deposits are summarised as follows:
2014 US Dollar million Recoverable fuel duties (1) 17 Recoverable value added tax 19 Appeal deposits 4
(1) Fuel duty claims are required to be submitted after consumption of the related fuel and are subject to authorisation by the Customs and Excise authorities.
19. Borrowings
AngloGold Ashanti’s borrowings are interest bearing.
20. Subsequent events
In February 2014, Cerro Vanguardia Sociedad Anonima (a 92.5% held subsidiary of AngloGold Ashanti Limited) entered into a sale agreement with Franco Nevada Corporation, subject to certain conditions, related to the 2.0% NSR royalty on Yamana’s Gold Inc.’s Cerro Moro project located in Argentina for a cash consideration equal to the Argentine peso equivalent of US$23.5 million (as determined at the official Argentine peso/US$ exchange rate on closing). The conditions were met and the transaction closed on 24 April 2014.
21. Announcements
AMCU Strike Notice: On 20 January 2014, AngloGold Ashanti confirmed that the Association of Mineworkers and Construction Union (AMCU) had served notice that it intended to call a strike by its members at the company’s South Africa operations, starting Thursday, 23 January 2014.
Threatened strike by AMCU declared unprotected: On 30 January 2014, AngloGold Ashanti announced that South Africa’s Labour Court had ruled that a strike threatened by AMCU at the company’s South Africa mines would be unprotected, and that employees should continue to proceed to work. Also, on 30 January 2014, the court granted an interim interdict and ruled that AMCU must return to court on 14 March 2014 to explain why the interim interdict should not be made permanent.
On 14 March 2014, a postponement was requested and a new court date was set for 5 June 2014. The interim interdict will remain in force until 5 June 2014.
AngloGold Ashanti enters into agreement to sell Navachab mine: On 10 February 2014, AngloGold Ashanti announced that it had signed a binding agreement, subject to certain conditions, to sell its entire interest in AngloGold Ashanti Namibia (Proprietary) Limited, a wholly owned subsidiary which owns the Navachab Gold Mine, to a wholly-owned subsidiary of QKR Corporation Limited. The agreement provided for an upfront consideration based on an enterprise value of US$110 million which will be adjusted to take into account the mine’s net debt and working capital position on the closing date of the transaction and is subject to a number of conditions precedent.
Changes to the Board of Directors: On 17 February 2014, AngloGold Ashanti announced that as a result of his increasing portfolio of professional commitments, Mr TT Mboweni had decided not to stand for re-election as an independent Non-Executive Director at the Annual General Meeting to be held on 14 May 2014. Mr Mboweni also stood down as Chairman on the same date. Mr SM Pityana was elected unanimously by the board to take over from Mr Mboweni. Prof LW Nkuhlu was also appointed Lead Independent Director.
AngloGold Ashanti announces new board appointment: on 25 March 2014 AngloGold Ashanti announced the appointment of Mr David L Hodgson as an independent non-executive director to its Board of Directors, with effect from 25 April 2014.
By order of the Board
S M PITYANA S VENKATAKRISHNAN Chairman Chief Executive Officer
12 May 2014
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From time to time AngloGold Ashanti Limited may publicly disclose certain "Non-GAAP" financial measures in the course of its financial presentations, earnings releases, earnings conference calls and otherwise.
The group uses certain Non-GAAP performance measures and ratios in managing the business and may provide users of this financial information with additional meaningful comparisons between current results and results in prior operating periods. Non-GAAP financial measures should be viewed in addition to, and not as an alternative to, the reported operating results or any other measure of performance prepared in accordance with IFRS. In addition, the presentation of these measures may not be comparable to similarly titled measures that other companies use.
A Adjusted headline earnings Quarter ended Year ended Mar Dec Mar Dec 2014 2013 2013 2013
Unaudited Unaudited Unaudited Unaudited US Dollar million Headline earnings (loss) (note 9) 38 (276) 259 78 Loss (gain) on unrealised non-hedge derivatives and other commodity contracts 16 (28) - (94) Deferred tax on unrealised non-hedge derivatives and other commodity contracts (note 8) (4) 8 - 25 Derecognition of deferred tax assets - 330 - 330 Fair value adjustment on $1.25bn bonds 70 12 - 58 Fair value adjustment on option component of convertible bonds - - (9) (9) Fair value adjustment on mandatory convertible bonds - - (137) 211 Adjusted headline earnings 119 45 113 599
Adjusted headline earnings per ordinary share (cents) (1) 29 11 29 153
(1) Calculated on the basic weighted average number of ordinary shares. B Adjusted gross profit
Quarter ended Year ended Mar Dec Mar Dec 2014 2013 2013 2013
Unaudited Unaudited Unaudited Unaudited
US Dollar million Reconciliation of gross profit to adjusted gross profit: Gross profit 296 404 434 1,445 Loss (gain) on unrealised non-hedge derivatives and other commodity contracts 16 (28) - (94) Adjusted gross profit 312 376 434 1,351
C Price received Quarter ended Year ended Mar Dec Mar Dec 2014 2013 2013 2013
Unaudited Unaudited Unaudited Unaudited US Dollar million / Imperial Gold income (note 2) 1,324 1,418 1,463 5,497 Adjusted for non-controlling interests (20) (15) (22) (77) 1,304 1,403 1,441 5,420 Realised loss on other commodity contracts 5 6 7 26 Associates and joint ventures' share of gold income including realised non-hedge derivatives 106 105 69 290 Attributable gold income including realised non-hedge derivatives 1,415 1,514 1,517 5,736 Attributable gold sold - oz (000) 1,097 1,191 927 4,093 Revenue price per unit - $/oz 1,290 1,271 1,636 1,401
Rounding of figures may result in computational discrepancies.
March 2014 Quarterly Report - www.AngloGoldAshanti.com 26 WorldReginfo - 151229a5-2fa8-4a9a-9559-9c836edee9ed Quarter ended Year ended Mar Dec Mar Dec 2014 2013 2013 2013
Unaudited Unaudited Unaudited Unaudited US Dollar million / Imperial D All-in sustaining costs 1 Cost of sales (note 3) 1,012 1,042 1,029 4,146 Amortisation of tangible and intangible assets (note 3) (184) (211) (215) (799) Adjusted for decommissioning amortisation 2 2 2 6 Inventory writedown to net realisable value and other stockpile adjustments (note 5) - 38 - 216 Corporate administration and marketing related to current operations 25 36 65 199 Associates and joint ventures' share of costs 68 90 47 234 Sustaining exploration and study costs 10 16 31 94 Total sustaining capex 174 253 243 999 All-in sustaining costs 1,107 1,265 1,202 5,095 Adjusted for non-controlling interests and non -gold producing companies (17) (16) (19) (71) All-in sustaining costs adjusted for non-controlling interests and non-gold producing companies 1,090 1,249 1,183 5,024 Adjusted for stockpile write-offs - (38) - (216) All-in sustaining costs adjusted for non-controlling interests, non-gold producing companies and stockpile write-offs 1,090 1,211 1,183 4,808
All-in sustaining costs 1,107 1,265 1,202 5,095 Non-sustaining Project capex 100 224 26 9 994 Technology improvements 4 7 2 14 Non-sustaining exploration and study costs 21 28 53 175 Corporate and social responsibility costs not related to current operations 5 1 1 21 All-in costs 1,237 1,525 1,527 6,299 Adjusted for non-controlling interests and non -gold producing companies (14) (16) (23) (81) All-in costs adjusted for non-controlling interests and non-gold producing companies 1,223 1,509 1,504 6,218 Adjusted for stockpile write-offs - (38) - (216) All-in costs adjusted for non-controlling interests, non-gold producing companies and stockpile write-offs 1,223 1,471 1,504 6,002
Gold sold - oz (000) 1,097 1,191 927 4,093
All-in sustaining cost (excluding stockpile write-offs) per unit - $/oz 993 1,015 1,275 1,174 All-in cost per unit (excluding stockpile write-offs) - $/oz 1,114 1,233 1,622 1,466
1 Refer to note J for summary of operations by mine
E Total costs 2 Total cash costs (note 3) 778 861 797 3,297 Adjusted for non-controlling interests, non-gold producing companies and other (34) (20) (39) (110) Associates and joint ventures' share of total cash costs 68 79 46 219 Total cash costs adjusted for non-controlling interests and non-gold producing companies 812 920 804 3,406 Retrenchment costs (note 3) 6 16 6 69 Rehabilitation and other non-cash costs (note 3) 22 (11) 11 18 Amortisation of tangible assets (note 3) 175 202 213 775 Amortisation of intangible assets (note 3) 9 9 2 24 Adjusted for non-controlling interests and non-gold producing companies (4) 17 (6) 14 Equity-accounted associates and joint ventures' share of production costs 22 17 1 23 Total production costs adjusted for non-controlling interests and non-gold producing companies 1,042 1,170 1,031 4,329
Gold produced - oz (000) 1,055 1,229 899 4,105 Total cash cost per unit - $/oz 770 748 894 830 Total production cost per unit - $/oz 988 952 1,147 1,054
2 Refer to note J for summary of operations by mine
FEBITDA
Operating profit (loss) 229 235 264 (2,440) Retrenchment costs (note 3) 6 16 6 69 Amortisation of tangible assets (note 3) 175 202 213 775 Amortisation of intangible assets (note 3) 9 9 2 24 Impairment and derecognition of goodwill, tangible and intangible assets (note 5) - 36 1 3,029 Impairment of other investments (note 5) - 1 12 30 Net loss (profit) on disposal and derecognition of assets (note 5) 2 - 1 (2) Loss (gain) on unrealised non-hedge derivatives and other commodity contracts 16 (28) - (94) Write-down of stockpiles and heap leach to net realisable value and other stockpile adjustments (note 5) - 38 - 216 Write-off of a loan to SOKIMO (note 5) - - - 7 Share of equity-accounted associates and joint ventures' EBITDA 39 34 10 53 476 544 509 1,667
March 2014 Quarterly Report - www.AngloGoldAshanti.com 27 WorldReginfo - 151229a5-2fa8-4a9a-9559-9c836edee9ed Quarter ended Year ended Mar Dec Mar Dec 2014 2013 2013 2013
Unaudited Unaudited Unaudited Unaudited US Dollar million / Imperial G Interest cover
EBITDA (note F) 476 544 509 1,667
Finance costs (note 6) 64 67 49 247 Capitalised finance costs - - 4 5 64 67 53 252 Interest cover - times 7 8 10 7
As at As at As at Mar Dec Mar 2014 2013 2013
Unaudited Unaudited Unaudited US Dollar million H Net asset value - cents per share
Total equity 3,175 3,107 5,569 Mandatory convertible bonds - - 448 3,175 3,107 6,017 Number of ordinary shares in issue - million (note 10) 404 403 385 Net asset value - cents per share 786 770 1,562
Total equity 3,175 3,107 5,569 Mandatory convertible bonds - - 448 Intangible assets (269) (267) (321) 2,906 2,840 5,696 Number of ordinary shares in issue - million (note 10) 404 403 385 Net tangible asset value - cents per share 720 704 1,479 I Net debt Borrowings - long-term portion 3,569 3,633 2,844 Borrowings - short-term portion 235 258 214 Bank overdraft 22 20 - Total borrowings (1) 3,826 3,911 3,058 Corporate office lease (24) (25) (29) Unamortised portion of the convertible and rated bonds (3) 2 33 Fair value adjustment on $1.25bn bonds (128) (58) - Cash restricted for use (51) (77) (63) Cash and cash equivalents (525) (648) (680) Net debt excluding mandatory convertible bonds 3,095 3,105 2,319 (1) Borrowings exclude the mandatory convertible bonds (note H). Rounding of figures may result in computational discrepancies.
March 2014 Quarterly Report - www.AngloGoldAshanti.com 28 WorldReginfo - 151229a5-2fa8-4a9a-9559-9c836edee9ed J Summary of Operations by mine
For the three months ended 31 March 2014
Operations in South Africa (in $ millions, except as otherwise noted)
Surface operations Surface operations Total South Africa Africa South Total Moab Khotsong Moab Khotsong Great Noligwa South Africa Africa South (Operations) Corporate Kopanang Kopanang Mponeng Mponeng TauTona TauTona other other (5)
All-in sustaining costs Cost of sales per financial statements 22 53 49 74 58 56 - 312 1 Amortisation of tangible and intangible assets (2) (20) (12) (17) (17) (5) 1 (72) (3) Adjusted for decomissioning amortisation ------Inventory writedown to net realisable value and other stockpile adjustments ------Corporate administration and marketing related to current operations ------23 Associates and equity accounted joint ventures' share of costs(2) ------(1) Sustaining exploration and study costs ------Total sustaining capital expenditure 1 5 7 14 6 9 - 42 - All-in sustaining costs 21 38 44 71 47 60 1 282 20 Adjusted for non-controlling interests(1) ------3 All-in sustaining costs adjusted for non-controlling interests 21 38 44 71 47 60 1 282 23 Gold sold - oz (000)(3) 17 29 55 76 52 60 - 290
All-in sustaining cost (excluding stockpile impairments) per unit - $/oz(4) 1,200 1,320 802 930 916 1,000 - 975
Total cash costs Total cash costs per financial statements 19 32 35 54 40 50 1 231 (1) Adjusted for non-controlling interests, non-gold producing companies and other (1) ------2 Associates and equity accounted joint ventures’ share of total cash costs (2) ------(1) Total cash costs adjusted for non-controlling interests and non-gold producing companies 19 32 35 54 40 50 1 231 - Retrenchment costs - 1 1 2 1 - - 5 - Rehabilitation and other non-cash costs - 1 1 1 1 1 - 5 (2) Amortisation of tangible assets 1 19 11 16 16 5 (1) 67 1 Amortisation of intangible assets - - 1 1 1 1 1 5 1 Adjusted for non-controlling interests and non-gold producing companies (1) ------Associates and equity accounted joint ventures' share of production costs(2) ------1 Total production costs adjusted for non-controlling interests and non-gold producing companies 20 53 49 74 59 57 1 313 1 Gold produced – oz (000) (3) 17 29 55 76 52 60 - 290 - Total cash costs per unit – $/oz (4) 1,123 1,074 646 709 774 836 - 797 - Total production costs per unit – $/oz (4) 1,258 1,802 888 974 1,125 934 - 1,077 -
(1) Adjusting for non-controlling interest of items included in calculation, to disclose the attributable portions only. Other consists of heap leach inventory. (2) Attributable costs and related expenses of associates and equity accounted joint ventures are included in the calculation of total cash costs per ounce and total production costs per ounce. (3) Attributable portion. (4) In addition to the operational performances of the mines, all-in sustaining cost per ounce, total cash costs per ounce and total production costs per ounce are affected by fluctuations in the currency exchange rate. AngloGold Ashanti reports all-in sustaining cost per ounce calculated to the nearest US dollar amount and gold sold in ounces. AngloGold Ashanti reports total cash costs per ounce and total production costs per ounce calculated to the nearest US dollar amount and gold produced in ounces. (5) Corporate includes non-gold producing subsidiaries. (6) Total cash costs per ounce calculation includes heap-leach inventory change.
March 2014 Quarterly Report - www.AngloGoldAshanti.com 29 WorldReginfo - 151229a5-2fa8-4a9a-9559-9c836edee9ed For the three months ended 31 March 2014
Operations in DRC, Ghana, Guinea, Mali, Namibia and Tanzania (in $ millions, except as otherwise noted)
TANZANIA TANZANIA NAMIBIA NAMIBIA GUINEA GUINEA GHANA MALI MALI DRC DRC Continental Africa other Africa other Continental CONTINENTAL AFRICA AFRICA CONTINENTAL
TOTAL TOTAL Iduapriem Iduapriem Navachab Navachab Sadiola Sadiola Obuasi Obuasi Siguiri Siguiri Morila Morila Yatela Kibali Geita Geita
All-in sustaining costs Cost of sales per financial statements - 52 71 78 - - - 14 109 1 325 Amortisation of tangible and intangible assets - (5) (4) (7) - - - - (18) (1) (35) Adjusted for decomissioning amortisation - - - 1 ------1 Inventory writedown to net realisable value and other stockpile adjustments ------Abandonment of stockpiles ------Corporate administration and marketing related to current operations ------1 1 Associates and equity accounted joint ventures' share of costs(2) 28 - - - 11 23 7 - - - 69 Sustaining exploration and study costs - - - 1 ------1 Total sustaining capital expenditure 2 4 14 9 4 1 - - 36 - 70 All-in sustaining costs 30 51 81 82 15 24 7 14 127 1 432 Adjusted for non-controlling interests(1) - - - (12) ------(12) All-in sustaining costs adjusted for non- controlling interests 30 51 81 70 15 24 7 14 127 1 420 Gold sold - oz (000)(3) 51 57 53 71 10 17 4 17 122 - 401
All-in sustaining cost (excluding stockpile impairments) per unit - $/oz(4) 572 898 1,530 961 1,598 1,404 2,062 785 1,048 - 1,042
Total cash costs Total cash costs per financial statements - 32 66 66 - - - 13 67 (1) 243 Adjusted for non-controlling interests, non-gold producing companies and other (1) - - - (10) ------(10) Associates and equity accounted joint ventures’ share of total cash costs (2) 28 - - - 11 24 6 - - - 69 Total cash costs adjusted for non-controlling interests and non-gold producing companies 28 32 66 56 11 24 6 13 67 (1) 302 Retrenchment costs ------1 - 1 Rehabilitation and other non-cash costs - 1 2 1 - - - - 3 - 7 Amortisation of tangible assets - 5 4 7 - - - - 18 1 35 Amortisation of intangible assets ------1 1 Adjusted for non-controlling interests and non- (1) gold producing companies - - - (1) ------(1) Associates and equity accounted joint ventures' share of production costs(2) 14 - - - 1 6 - - - - 21 Total production costs adjusted for non- controlling interests and non-gold producing companies 42 38 72 63 12 30 6 13 89 1 366 Gold produced – oz (000) (3) 51 45 53 70 10 19 4 16 106 - 374 Total cash costs per unit – $/oz (4) 538 716 1,234 800 1,099 1,262 1,804 771 631 - 808 Total production costs per unit – $/oz (4) 806 857 1,346 907 1,215 1,591 1,889 780 832 - 977
March 2014 Quarterly Report - www.AngloGoldAshanti.com 30 WorldReginfo - 151229a5-2fa8-4a9a-9559-9c836edee9ed For the three months ended 31 March 2014
Operations in Australia, United States of America, Argentina and Brazil (in $ millions, except as otherwise noted)
UNITED STATES UNITED STATES OF AMERICA OF AMERICA ARGENTINA ARGENTINA AUSTRALIA AUSTRALIA BRAZIL BRAZIL
TOTAL AUSTRALIA AUSTRALIA TOTAL Americas other Americas other AMERICAS AMERICAS TOTAL TOTAL AngloGold Ashanti Ashanti AngloGold Cerro Vanguardia Cerro Vanguardia Cripple Creek & Australia other other Australia Serra Grande Serra Grande Sunrise Dam Sunrise Dam Mineracao Mineracao Tropicana Tropicana Victor Victor
All-in sustaining costs Cost of sales per financial statements 89 62 6 157 43 56 81 37 - 217 Amortisation of tangible and intangible assets (8) (22) - (30) - (8) (26) (10) - (44) Adjusted for decomissioning amortisation - 1 - 1 ------Inventory writedown to net realisable value and other stockpile adjustments ------Corporate administration and marketing related to current operations - - 1 1 ------Associates and equity accounted joint ventures' share of costs(2) ------Sustaining exploration and study costs - - 2 2 - - 2 1 4 7 Total sustaining capital expenditure 9 18 0 27 4 7 17 7 - 35 All-in sustaining costs 90 59 9 158 47 55 74 35 4 215 Adjusted for non-controlling interests(1) - - - - - (4) - - (4) (8) All-in sustaining costs adjusted for non-controlling interests 90 59 9 158 47 51 74 35 - 207 Gold sold - oz (000)(3) 83 86 - 168 47 65 92 34 - 237
All-in sustaining cost (excluding stockpile impairments) per unit - $/oz(4) 1,095 694 - 929 1,015 800 805 1,027 - 879
Total cash costs Total cash costs per financial statements 75 42 4 121 60 41 58 25 - 184 Adjusted for non-controlling interests, non-gold producing companies and other (1) - - - - (23) (3) - - - (26) Associates and equity accounted joint ventures’ share of total cash costs (2) ------Total cash costs adjusted for non-controlling interests and non-gold producing companies 75 42 4 121 37 38 58 25 - 158 Retrenchment costs ------Rehabilitation and other non-cash costs - - 1 1 8 2 - - 1 11 Amortisation of tangible assets 8 22 - 30 - 8 24 10 - 42 Amortisation of intangible assets ------1 - 1 2 Adjusted for non-controlling interests and non-gold (1) producing companies - - - - (2) (1) - - - (3) Associates and equity accounted joint ventures' share of production costs(2) ------Total production costs adjusted for non-controlling
interests and non-gold producing companies 83 64 5 152 43 47 83 35 2 210 Gold produced – oz (000) (3) 71 84 - 155 52 58 94 32 - 236 Total cash costs per unit – $/oz (4) 1,066 495 - 779 699(6) 644 619 799 - 668 Total production costs per unit – $/oz (4) 1,180 751 - 979 826 804 895 1,134 - 890
March 2014 Quarterly Report - www.AngloGoldAshanti.com 31 WorldReginfo - 151229a5-2fa8-4a9a-9559-9c836edee9ed For the three months ended 31 December 2013
Operations in South Africa (in $ millions, except as otherwise noted)
Surface operations Surface operations Total South Africa Africa South Total Moab Khotsong Moab Khotsong Great Noligwa Great South Africa Africa South (Operations) Corporate TauTona TauTona Kopanang Kopanang Savuka Mponeng Mponeng other other (7) (7) (5)
All-in sustaining costs Cost of sales per financial statements 24 49 56 82 - 50 61 - 322 (5) Amortisation of tangible and intangible assets (2) (10) (12) (19) - (13) (6) (62) (2) Adjusted for decomissioning amortisation ------Inventory writedown to net realisable value and other stockpile adjustments ------(2) Corporate administration and marketing related to current operations ------2 2 31 Associates and equity accounted joint ventures' share of costs(2) ------Sustaining exploration and study costs ------Total sustaining capital expenditure 4 12 16 26 - 16 6 - 80 3 All-in sustaining costs 26 51 60 89 - 53 61 2 342 25 Adjusted for non-controlling interests(1) ------All-in sustaining costs adjusted for non-controlling interests 26 51 60 89 - 53 61 2 342 25 Gold sold - oz (000)(3) 20 39 67 93 - 62 59 - 340
All-in sustaining cost (excluding stockpile impairments) per unit - $/oz(4) 1,294 1,296 890 963 - 852 1,039 - 1,005
Total cash costs Total cash costs per financial statements 20 36 40 61 - 50 53 - 260 (8) Adjusted for non-controlling interests, non-gold producing companies and other (1) ------8 Associates and equity accounted joint ventures’ share of total cash costs (2) ------Total cash costs adjusted for non-controlling interests and non-gold producing companies 20 36 40 61 - 50 53 - 260 - Retrenchment costs 1 2 1 2 - - - - 6 (1) Rehabilitation and other non-cash costs 1 2 3 - - (13) 1 (2) (8) - Amortisation of tangible assets 2 9 11 18 - 12 6 - 58 1 Amortisation of intangible assets - 1 1 2 - 1 - - 5 1 Adjusted for non-controlling interests and non-gold producing companies (1) ------1 Associates and equity accounted joint ventures' share of production costs(2) ------Total production costs adjusted for non-controlling interests and non-gold producing companies 24 50 56 83 - 50 60 (2) 321 2 Gold produced – oz (000) (3) 20 39 67 93 - 62 58 - 339 - Total cash costs per unit – $/oz (4) 1,032 910 596 656 - 809 915 - 767 - Total production costs per unit – $/oz (4) 1,198 1,239 835 885 - 809 1,035 - 946 - (1) Adjusting for non-controlling interest of items included in calculation, to disclose the attributable portions only. Other consists of heap leach inventory of Cripple Creek & Victor. (2) Attributable costs and related expenses of associates and equity accounted joint ventures are included in the calculation of total cash costs per ounce and total production costs per ounce. (3) Attributable portion. (4) In addition to the operational performances of the mines, all-in sustaining cost per ounce, total cash costs per ounce and total production costs per ounce are affected by fluctuations in the currency exchange rate. AngloGold Ashanti reports all-in sustaining cost per ounce calculated to the nearest US dollar amount and gold sold in ounces. AngloGold Ashanti reports total cash costs per ounce and total production costs per ounce calculated to the nearest US dollar amount and gold produced in ounces. (5) Corporate includes non-gold producing subsidiaries. (6) Total cash costs per ounce calculation includes heap-leach inventory change. (7) As from 1 January 2013, Tau Tona and Savuka were mined as one operation.
March 2014 Quarterly Report - www.AngloGoldAshanti.com 32 WorldReginfo - 151229a5-2fa8-4a9a-9559-9c836edee9ed For the three months ended 31 December 2013
Operations in DRC, Ghana, Guinea, Mali, Namibia and Tanzania (in $ millions, except as otherwise noted)
TANZANIA TANZANIA NAMIBIA NAMIBIA GUINEA GUINEA GHANA MALI MALI DRC DRC Continental Africa other Africa other Continental CONTINENTAL AFRICA AFRICA CONTINENTAL
TOTAL TOTAL Iduapriem Iduapriem Navachab Navachab Sadiola Sadiola Obuasi Obuasi Siguiri Siguiri Morila Morila Yatela Kibali Geita Geita
All-in sustaining costs Cost of sales per financial statements - 72 94 76 - - - 8 98 5 353 Amortisation of tangible and intangible assets - (8) (2) (8) - - - - (33) - (51) Adjusted for decomissioning amortisation - - - 1 - - - - - 1 2 Inventory writedown to net realisable value and other stockpile adjustments - - - - - 17 - - 23 - 40 Corporate administration and marketing related to current operations ------(2) (2) Associates and equity accounted joint ventures' share of costs(2) 19 - - - 11 41 18 - - 1 90 Sustaining exploration and study costs - - - 5 - 1 - - 1 - 7 Total sustaining capital expenditure - 6 37 10 6 (1) - 1 50 - 109 All-in sustaining costs 19 70 129 84 17 58 18 9 139 5 548 Adjusted for non-controlling interests(1) - - - (13) - - - - - 1 (12) All-in sustaining costs adjusted for non- controlling interests 19 70 129 71 17 58 18 9 139 6 536 Gold sold - oz (000)(3) 40 62 62 64 12 24 8 17 147 - 437
All-in sustaining cost (excluding stockpile impairments) per unit - $/oz(4) 469 1,153 2,069 1,116 1,434 1,639 2,226 526 784 - 1,129
Total cash costs Total cash costs per financial statements - 65 86 75 - - - 9 83 - 318 Adjusted for non-controlling interests, non-gold producing companies and other (1) - - - (11) ------(11) Associates and equity accounted joint ventures’ share of total cash costs (2) 19 - - - 10 36 15 - - (1) 79 Total cash costs adjusted for non-controlling interests and non-gold producing companies 19 65 86 64 10 36 15 9 83 (1) 386 Retrenchment costs - 5 1 ------3 9 Rehabilitation and other non-cash costs - 6 6 3 - - - (1) (1) 1 14 Amortisation of tangible assets - 7 2 8 - - - - 33 - 50 Amortisation of intangible assets ------1 1 Adjusted for non-controlling interests and non- (1) gold producing companies - - - (2) ------(2) Associates and equity accounted joint ventures' share of production costs(2) 9 - - - 2 4 3 - - (1) 17 Total production costs adjusted for non- controlling interests and non-gold producing companies 28 83 95 73 12 40 18 8 115 3 476 Gold produced – oz (000) (3) 40 67 63 75 12 24 8 18 154 - 460 Total cash costs per unit – $/oz (4) 471 966 1,354 844 853 1,506 1,923 524 543 - 839 Total production costs per unit – $/oz (4) 694 1,240 1,492 967 982 1,673 2,255 485 755 - 1,034
March 2014 Quarterly Report - www.AngloGoldAshanti.com 33 WorldReginfo - 151229a5-2fa8-4a9a-9559-9c836edee9ed For the three months ended 31 December 2013
Operations in Australia, United States of America, Argentina and Brazil (in $ millions, except as otherwise noted)
UNITED STATES UNITED STATES OF AMERICA OF AMERICA ARGENTINA ARGENTINA AUSTRALIA AUSTRALIA BRAZIL BRAZIL
TOTAL AUSTRALIA AUSTRALIA TOTAL Americas other Americas other AMERICAS AMERICAS TOTAL TOTAL AngloGold Ashanti Ashanti AngloGold Cerro Vanguardia Cerro Vanguardia Cripple Creek & Australia other other Australia Serra Grande Serra Grande Sunrise Dam Sunrise Dam Mineracao Mineracao Tropicana Tropicana Victor Victor
All-in sustaining costs Cost of sales per financial statements 97 64 1 162 40 46 91 32 1 210 Amortisation of tangible and intangible assets (27) (27) (2) (56) - (7) (22) (10) (1) (40) Adjusted for decomissioning amortisation ------Inventory writedown to net realisable value and other stockpile adjustments ------Corporate administration and marketing related to current operations - - - - 3 - 2 - - 5 Associates and equity accounted joint ventures' share of costs(2) ------Sustaining exploration and study costs - - 2 2 1 - 4 2 - 7
Total sustaining capital expenditure
6 - 1 7 8 11 37 9 (11) 54 All-in sustaining costs 76 37 2 115 52 50 112 33 (11) 236 Adjusted for non-controlling interests(1) - - - - - (4) - - - (4) All-in sustaining costs adjusted for non-controlling interests 76 37 2 115 52 46 112 33 (11) 232 Gold sold - oz (000)(3) 94 58 - 152 48 54 126 34 - 262
All-in sustaining cost (excluding stockpile impairments) per unit - $/oz(4) 804 640 - 763 1,076 852 891 956 - 887
Total cash costs Total cash costs per financial statements 70 38 - 108 52 44 62 24 1 183 Adjusted for non-controlling interests, non-gold producing companies and other (1) - - - - (13) (3) - - (1) (17) Associates and equity accounted joint ventures’ share of total cash costs (2) ------Total cash costs adjusted for non-controlling interests and non-gold producing companies 70 38 - 108 39 41 62 24 - 166 Retrenchment costs - - 1 1 - - - - 1 1 Rehabilitation and other non-cash costs - 2 - 2 (19) - 2 (3) 1 (19) Amortisation of tangible assets 27 27 1 55 - 7 21 10 - 38 Amortisation of intangible assets ------1 - 1 2 Adjusted for non-controlling interests and non-gold (1) producing companies - - - - 20 (1) - - (1) 18 Associates and equity accounted joint ventures' share of production costs(2) ------Total production costs adjusted for non-controlling
interests and non-gold producing companies 97 67 2 166 40 47 86 31 2 206 Gold produced – oz (000) (3) 102 66 - 169 47 61 120 34 - 262 Total cash costs per unit – $/oz (4) 685 569 - 640 825(6) 672 518 712 - 634 Total production costs per unit – $/oz (4) 945 1,016 - 985 846 784 720 928 - 787
March 2014 Quarterly Report - www.AngloGoldAshanti.com 34 WorldReginfo - 151229a5-2fa8-4a9a-9559-9c836edee9ed For the three months ended 31 March 2013
Operations in South Africa (in $ millions, except as otherwise noted)
Surface operations Surface operations Total South Africa Africa South Total Moab Khotsong Moab Khotsong Great Noligwa Great South Africa Africa South (Operations) Corporate TauTona TauTona Kopanang Kopanang Savuka Mponeng Mponeng other other (7) (7) (5)
All-in sustaining costs Cost of sales per financial statements 28 54 60 87 - 71 54 - 354 4 Amortisation of tangible and intangible assets (2) (11) (18) (22) - (11) (5) (69) - Adjusted for decomissioning amortisation ------1 Inventory writedown to net realisable value and other stockpile adjustments ------Corporate administration and marketing related to current operations ------1 1 55 Associates and equity accounted joint ventures' share of costs(2) ------2 Sustaining exploration and study costs ------Total sustaining capital expenditure 3 12 21 20 - 14 - (1) 69 3 All-in sustaining costs 29 55 63 85 - 74 49 - 355 65 Adjusted for non-controlling interests(1) ------All-in sustaining costs adjusted for non-controlling interests 29 55 63 85 - 74 49 - 355 65 Gold sold - oz (000)(3) 23 45 40 91 - 56 60 - 314
All-in sustaining cost (excluding stockpile impairments) per unit - $/oz(4) 1,243 1,228 1,564 929 - 1,319 832 - 1,129
Total cash costs Total cash costs per financial statements 26 44 45 66 - 61 50 1 293 3 Adjusted for non-controlling interests, non-gold producing companies and other (1) ------(3) Associates and equity accounted joint ventures’ share of total cash costs (2) ------Total cash costs adjusted for non-controlling interests and non-gold producing companies 26 44 45 66 - 61 50 1 293 - Retrenchment costs 1 - - - - - 1 - 2 1 Rehabilitation and other non-cash costs - 1 1 1 - 1 - - 4 (1) Amortisation of tangible assets 2 11 18 22 - 11 5 - 69 - Amortisation of intangible assets ------1 Adjusted for non-controlling interests and non-gold producing companies (1) ------(1) Associates and equity accounted joint ventures' share of production costs(2) ------(1) Total production costs adjusted for non-controlling interests and non-gold producing companies 29 56 64 89 - 73 56 1 368 (1) Gold produced – oz (000) (3) 24 47 43 93 - 57 63 - 327 - Total cash costs per unit – $/oz (4) 1,108 932 1,052 707 - 1,070 805 - 896 - Total production costs per unit – $/oz (4) 1,220 1,193 1,496 950 - 1,280 892 - 1,123 -
(1) Adjusting for non-controlling interest of items included in calculation, to disclose the attributable portions only. Other consists of heap leach inventory of Cripple Creek & Victor. (2) Attributable costs and related expenses of associates and equity accounted joint ventures are included in the calculation of total cash costs per ounce and total production costs per ounce. (3) Attributable portion. (4) In addition to the operational performances of the mines, all-in sustaining cost per ounce, total cash costs per ounce and total production costs per ounce are affected by fluctuations in the currency exchange rate. AngloGold Ashanti reports all-in sustaining cost per ounce calculated to the nearest US dollar amount and gold sold in ounces. AngloGold Ashanti reports total cash costs per ounce and total production costs per ounce calculated to the nearest US dollar amount and gold produced in ounces. (5) Corporate includes non-gold producing subsidiaries. (6) Total cash costs per ounce calculation includes heap-leach inventory change. (7) As from 1 January 2013, Tau Tona and Savuka were mined as one operation.
March 2014 Quarterly Report - www.AngloGoldAshanti.com 35 WorldReginfo - 151229a5-2fa8-4a9a-9559-9c836edee9ed For the three months ended 31 March 2013
Operations in DRC, Ghana, Guinea, Mali, Namibia and Tanzania (in $ millions, except as otherwise noted)
TANZANIA TANZANIA NAMIBIA NAMIBIA GUINEA GUINEA GHANA MALI MALI DRC DRC Continental Africa other Africa other Continental CONTINENTAL AFRICA AFRICA CONTINENTAL
TOTAL TOTAL Iduapriem Iduapriem Navachab Navachab Sadiola Sadiola Obuasi Obuasi Siguiri Siguiri Morila Morila Yatela Kibali Geita Geita
All-in sustaining costs Cost of sales per financial statements - 55 123 91 - - - 17 71 4 361 Amortisation of tangible and intangible assets - (7) (23) (6) - - - (4) (29) (2) (71) Adjusted for decomissioning amortisation - - - 1 ------1 Inventory writedown to net realisable value and other stockpile adjustments ------Corporate administration and marketing related to current operations 2 ------2 4 Associates and equity accounted joint ventures' share of costs(2) - - - - 12 19 13 - - 1 45 Sustaining exploration and study costs - - 2 5 - 1 - - 2 - 10 Total sustaining capital expenditure - 7 47 8 1 3 - 1 31 - 98 All-in sustaining costs 2 55 149 99 13 23 13 14 75 5 448 Adjusted for non-controlling interests(1) - - - (15) ------(15) All-in sustaining costs adjusted for non- controlling interests 2 55 149 84 13 23 13 14 75 5 433 Gold sold - oz (000)(3) - 43 57 72 15 18 10 14 86 - 315
All-in sustaining cost (excluding stockpile impairments) per unit - $/oz(4) - 1,286 2,608 1,172 883 1,317 1,350 1,005 878 - 1,376
Total cash costs Total cash costs per financial statements - 43 86 73 - - - 12 26 - 240 Adjusted for non-controlling interests, non-gold producing companies and other (1) - - - (11) ------(11) Associates and equity accounted joint ventures’ share of total cash costs (2) - - - - 12 21 13 - - - 46 Total cash costs adjusted for non-controlling interests and non-gold producing companies - 43 86 62 12 21 13 12 26 - 275 Retrenchment costs - - 2 ------2 Rehabilitation and other non-cash costs - 1 2 1 - - - - 1 - 5 Amortisation of tangible assets - 7 23 6 - - - 4 29 1 70 Amortisation of intangible assets ------1 1 Adjusted for non-controlling interests and non- (1) gold producing companies - - - (1) ------(1) Associates and equity accounted joint ventures' share of production costs(2) - - - - 1 - 1 - - - 2 Total production costs adjusted for non- controlling interests and non-gold producing companies - 51 113 68 13 21 14 16 56 2 354 Gold produced – oz (000) (3) - 41 49 62 15 19 10 14 66 - 276 Total cash costs per unit – $/oz (4) - 1,052 1,742 998 772 1,103 1,316 896 389 - 994 Total production costs per unit – $/oz (4) - 1,235 2,290 1,087 841 1,124 1,377 1,221 839 - 1,278
March 2014 Quarterly Report - www.AngloGoldAshanti.com 36 WorldReginfo - 151229a5-2fa8-4a9a-9559-9c836edee9ed For the three months ended 31 March 2013
Operations in Australia, United States of America, Argentina and Brazil (in $ millions, except as otherwise noted)
UNITED STATES UNITED STATES OF AMERICA OF AMERICA ARGENTINA ARGENTINA AUSTRALIA AUSTRALIA BRAZIL BRAZIL
TOTAL AUSTRALIA AUSTRALIA TOTAL Americas other Americas other AMERICAS AMERICAS TOTAL TOTAL AngloGold Ashanti Ashanti AngloGold Cerro Vanguardia Cerro Vanguardia Cripple Creek & Australia other other Australia Serra Grande Serra Grande Sunrise Dam Sunrise Dam Mineracao Mineracao Tropicana Tropicana Victor Victor
All-in sustaining costs Cost of sales per financial statements 87 - 4 91 44 45 97 32 1 219 Amortisation of tangible and intangible assets (13) - (1) (14) (11) (10) (30) (9) (1) (61) Adjusted for decomissioning amortisation ------Inventory writedown to net realisable value and other stockpile adjustments ------Corporate administration and marketing related to current operations - - - - 4 - 1 - - 5 Associates and equity accounted joint ventures' share of costs(2) ------Sustaining exploration and study costs 7 1 3 11 1 3 4 2 - 10 Total sustaining capital expenditure 19 - - 19 1 18 21 7 7 54 All-in sustaining costs 100 1 6 107 39 56 93 32 7 227 Adjusted for non-controlling interests(1) - - - - - (4) - - - (4) All-in sustaining costs adjusted for non-controlling interests 100 1 6 107 39 52 93 32 7 223 Gold sold - oz (000)(3) 58 - - 58 53 54 99 34 - 241
All-in sustaining cost (excluding stockpile impairments) per unit - $/oz(4) 1,727 - - 1,857 743 955 933 952 - 924
Total cash costs Total cash costs per financial statements 76 - 3 79 58 35 63 25 1 182 Adjusted for non-controlling interests, non-gold producing companies and other (1) - - - - (23) (3) - - 1 (25) Associates and equity accounted joint ventures’ share of total cash costs (2) ------Total cash costs adjusted for non-controlling interests and non-gold producing companies 76 - 3 79 35 32 63 25 2 157 Retrenchment costs ------1 - - 1 Rehabilitation and other non-cash costs - - - - 1 1 - - 1 3 Amortisation of tangible assets 13 - 1 14 11 10 30 9 - 60 Amortisation of intangible assets ------Adjusted for non-controlling interests and non-gold (1) producing companies - - - - (3) (1) - - - (4) Associates and equity accounted joint ventures' share of production costs(2) ------Total production costs adjusted for non-controlling
interests and non-gold producing companies 89 - 4 93 44 42 94 34 3 217 Gold produced – oz (000) (3) 61 - - 61 55 55 92 32 - 234 Total cash costs per unit – $/oz (4) 1,247 - - 1,302 643(6) 583 689 789 - 668 Total production costs per unit – $/oz (4) 1,460 - - 1,525 803 783 1,028 1,082 - 926
March 2014 Quarterly Report - www.AngloGoldAshanti.com 37 WorldReginfo - 151229a5-2fa8-4a9a-9559-9c836edee9ed
For the year ended 31 December 2013
Operations in South Africa (in $ millions, except as otherwise noted)
Surface operations Surface operations Total South Africa Africa South Total Moab Khotsong Moab Khotsong Great Noligwa South Africa Africa South (Operations) Corporate TauTona TauTona Kopanang Kopanang Savuka Mponeng Mponeng other other (7) (7) (5)
All-in sustaining costs Cost of sales per financial statements 103 215 240 347 - 262 226 - 1,393 1 Amortisation of tangible and intangible assets (8) (43) (60) (82) - (51) (9) (253) (9) Adjusted for decomissioning amortisation (1) 1 1 - - - - - 1 (1) Inventory writedown to net realisable value and other stockpile adjustments ------1 1 (1) Corporate administration and marketing related to current operations ------5 5 168 Associates and equity accounted joint ventures' share of costs(2) ------2 Sustaining exploration and study costs ------(1) Total sustaining capital expenditure 14 50 78 95 - 59 16 - 312 9 All-in sustaining costs 108 223 259 360 - 270 233 6 1,459 168 Adjusted for non-controlling interests(1) ------All-in sustaining costs adjusted for non-controlling interests 108 223 259 360 - 270 233 6 1,459 168 Gold sold - oz (000)(3) 83 178 212 354 - 235 240 - 1,302
All-in sustaining cost (excluding stockpile impairments) per unit - $/oz(4) 1,305 1,255 1,223 1,016 - 1,149 969 - 1,120
Total cash costs Total cash costs per financial statements 91 163 169 255 - 216 213 - 1,107 (7) Adjusted for non-controlling interests, non-gold producing companies and other (1) ------6 Associates and equity accounted joint ventures’ share of total cash costs (2) ------Total cash costs adjusted for non-controlling interests and non-gold producing companies 91 163 169 255 - 216 213 - 1,107 (1) Retrenchment costs 3 5 6 7 - 6 - - 27 - Rehabilitation and other non-cash costs 1 4 6 3 - (10) 3 - 7 1 Amortisation of tangible assets 7 41 57 77 - 47 8 - 237 6 Amortisation of intangible assets 1 3 3 5 - 3 - - 15 2 Adjusted for non-controlling interests and non-gold producing companies (1) ------(3) Associates and equity accounted joint ventures' share of production costs(2) ------1 Total production costs adjusted for non-controlling interests and non-gold producing companies 103 216 241 347 - 262 224 - 1,393 6 Gold produced – oz (000) (3) 83 178 212 354 - 235 240 - 1,302 - Total cash costs per unit – $/oz (4) 1,100 918 797 719 - 920 883 - 850 - Total production costs per unit – $/oz (4) 1,252 1,210 1,138 978 - 1,117 933 - 1,070 -
(1) Adjusting for non-controlling interest of items included in calculation, to disclose the attributable portions only. Other consists of heap leach inventory of Cripple Creek & Victor. (2) Attributable costs and related expenses of associates and equity accounted joint ventures are included in the calculation of total cash costs per ounce and total production costs per ounce. (3) Attributable portion. (4) In addition to the operational performances of the mines, all-in sustaining cost per ounce, total cash costs per ounce and total production costs per ounce are affected by fluctuations in the currency exchange rate. AngloGold Ashanti reports all-in sustaining cost per ounce calculated to the nearest US dollar amount and gold sold in ounces. AngloGold Ashanti reports total cash costs per ounce and total production costs per ounce calculated to the nearest US dollar amount and gold produced in ounces. (5) Corporate includes non-gold producing subsidiaries. (6) Total cash costs per ounce calculation includes heap-leach inventory change. (7) As from 1 January 2013, Tau Tona and Savuka were mined as one operation.
March 2014 Quarterly Report - www.AngloGoldAshanti.com 38 WorldReginfo - 151229a5-2fa8-4a9a-9559-9c836edee9ed
For the year ended 31 December 2013
Operations in DRC, Ghana, Guinea, Mali, Namibia and Tanzania (in $ millions, except as otherwise noted)
TANZANIA TANZANIA NAMIBIA NAMIBIA GUINEA GUINEA GHANA MALI MALI DRC DRC Continental Africa other Africa other Continental CONTINENTAL AFRICA AFRICA CONTINENTAL
TOTAL TOTAL Iduapriem Iduapriem Navachab Navachab Sadiola Sadiola Obuasi Obuasi Siguiri Siguiri Morila Morila Yatela Kibali Geita Geita
All-in sustaining costs Cost of sales per financial statements - 226 425 324 - - - 49 346 23 1,393 Amortisation of tangible and intangible assets - (30) (50) (27) - - - (6) (120) (6) (239) Adjusted for decomissioning amortisation - 1 1 3 - - - - 1 - 6 Inventory writedown to net realisable value and other stockpile adjustments - 83 4 - - 16 - 24 89 - 216 Corporate administration and marketing related to current operations - - 1 ------2 3 Associates and equity accounted joint ventures' share of costs(2) 21 - - - 47 118 46 - - - 232 Sustaining exploration and study costs - 1 6 18 - 2 - 1 11 - 39 Total sustaining capital expenditure - 22 154 27 13 11 - 5 146 1 379 All-in sustaining costs 21 303 541 345 60 147 46 73 473 20 2,029 Adjusted for non-controlling interests(1) - - - (52) - - - - - (1) (53) All-in sustaining costs adjusted for non- controlling interests 21 303 541 293 60 147 46 73 473 19 1,976 Gold sold - oz (000)(3) 40 215 242 272 57 86 28 63 461 - 1,462
All-in sustaining cost (excluding stockpile impairments) per unit - $/oz(4) 529 1,025 2,214 1,085 1,051 1,510 1,653 781 833 - 1,202
Total cash costs Total cash costs per financial statements - 190 336 290 - - - 44 237 (3) 1,094 Adjusted for non-controlling interests, non-gold producing companies and other (1) - - - (43) ------(43) Associates and equity accounted joint ventures’ share of total cash costs (2) 19 - - - 44 114 42 - - - 219 Total cash costs adjusted for non-controlling interests and non-gold producing companies 19 190 336 247 44 114 42 44 237 (3) 1,270 Retrenchment costs - 5 30 ------3 38 Rehabilitation and other non-cash costs - 7 4 4 - - - (1) - 7 21 Amortisation of tangible assets - 30 50 27 - - - 6 105 18 236 Amortisation of intangible assets ------4 4 Adjusted for non-controlling interests and non- (1) gold producing companies - - - (5) ------(5) Associates and equity accounted joint ventures' share of production costs(2) 9 - - - 4 5 4 - - - 22 Total production costs adjusted for non- controlling interests and non-gold producing companies 28 231 420 273 48 119 46 49 342 29 1,586 Gold produced – oz (000) (3) 40 221 239 268 57 86 27 63 459 - 1,460 Total cash costs per unit – $/oz (4) 471 861 1,406 918 773 1,334 1,530 691 515 - 869 Total production costs per unit – $/oz (4) 701 1,047 1,758 1,018 838 1,389 1,702 771 778 - 1,086
March 2014 Quarterly Report - www.AngloGoldAshanti.com 39 WorldReginfo - 151229a5-2fa8-4a9a-9559-9c836edee9ed For the year ended 31 December 2013
Operations in Australia, United States of America, Argentina and Brazil (in $ millions, except as otherwise noted)
UNITED STATES UNITED STATES OF AMERICA OF AMERICA ARGENTINA ARGENTINA AUSTRALIA AUSTRALIA BRAZIL BRAZIL
TOTAL AUSTRALIA AUSTRALIA TOTAL Americas other Americas other AMERICAS AMERICAS TOTAL TOTAL AngloGold Ashanti Ashanti AngloGold Cerro Vanguardia Cerro Vanguardia Cripple Creek & Australia other other Australia Serra Grande Serra Grande Sunrise Dam Sunrise Dam Mineracao Mineracao Tropicana Tropicana Victor Victor
All-in sustaining costs Cost of sales per financial statements 366 64 19 449 201 199 374 133 3 910 Amortisation of tangible and intangible assets (67) (27) (3) (97) (21) (35) (103) (41) (1) (201) Adjusted for decomissioning amortisation ------Inventory writedown to net realisable value and other stockpile adjustments ------Corporate administration and marketing related to current operations - - 1 1 15 - 6 - 1 22 Associates and equity accounted joint ventures' share of costs(2) ------Sustaining exploration and study costs 12 3 8 23 4 7 14 8 - 33 Total sustaining capital expenditure 39 25 5 69 15 61 118 36 - 230 All-in sustaining costs 350 65 30 445 214 232 409 136 3 994 Adjusted for non-controlling interests(1) - - - - - (18) - - - (18) All-in sustaining costs adjusted for non-controlling interests 350 65 30 445 214 214 409 136 3 976 Gold sold - oz (000)(3) 265 58 - 323 231 236 399 141 - 1,007
All-in sustaining cost (excluding stockpile impairments) per unit - $/oz(4) 1,321 1,113 - 1,376 927 912 1,023 970 - 970
Total cash costs Total cash costs per financial statements 306 38 14 358 230 162 253 99 1 745 Adjusted for non-controlling interests, non-gold producing companies and other (1) - - - - (61) (12) - - - (73) Associates and equity accounted joint ventures’ share of total cash costs (2) ------Total cash costs adjusted for non-controlling interests and non-gold producing companies 306 38 14 358 169 150 253 99 1 672 Retrenchment costs - - 1 1 - 1 2 - - 3 Rehabilitation and other non-cash costs (4) 2 1 (1) (15) 1 7 (4) 1 (10) Amortisation of tangible assets 67 27 4 98 21 35 101 40 1 198 Amortisation of intangible assets ------2 - 1 3 Adjusted for non-controlling interests and non-gold (1) producing companies - - - - 25 (3) - - - 22 Associates and equity accounted joint ventures' share of production costs(2) ------Total production costs adjusted for non-controlling
interests and non-gold producing companies 369 67 20 456 199 185 364 136 4 888 Gold produced – oz (000) (3) 276 66 - 342 231 241 391 138 - 1,001 Total cash costs per unit – $/oz (4) 1,110 568 - 1,047 732(6) 622 646 719 - 671 Total production costs per unit – $/oz (4) 1,341 1,018 - 1,333 864 767 931 991 - 886
March 2014 Quarterly Report - www.AngloGoldAshanti.com 40 WorldReginfo - 151229a5-2fa8-4a9a-9559-9c836edee9ed
March 2014 Quarterly Report - www.AngloGoldAshanti.com WorldReginfo - 151229a5-2fa8-4a9a-9559-9c836edee9ed
Administrative information
ANGLOGOLD ASHANTI LIMITED Directors Share Registrars Executive South Africa ^ Registration No. 1944/017354/06 RN Duffy (Chief Financial Officer) Computershare Investor Services (Pty) Limited § Ground Floor, 70 Marshall Street Incorporated in the Republic of South Africa S Venkatakrishnan* (Chief Executive Officer) Johannesburg 2001 (PO Box 61051, Marshalltown 2107) Non-Executive Share codes: South Africa SM Pityana^ (Chairman) ISIN: ZAE000043485 Telephone: (SA only) 0861 100 950 R Gasant^ JSE: ANG ^ Fax: +27 11 688 5218 DL Hogdson Website : [email protected] LSE: (Shares) AGD ^ NP January-Bardill LES : (Dis) AGD MJ Kirkwood* United Kingdom NYSE: AU Prof LW Nkuhlu^ Shares ASX: AGG ^ TT Mboweni Jersey GhSE: (Shares) AGA Computershare Investor Services (Jersey) Ltd GhSE: (GhDS) AAD R J Ruston~ Queensway House Hilgrove Street ^ JSE Sponsor: UBS (South Africa) (Pty) Ltd * British South African St Helier § ~ Australian Indian Jersey JE1 1ES Telephone: +44 870 889 3177 Auditors: Ernst & Young Inc. Officers Fax: +44 (0) 870 873 5851 Depositary Interests Offices Group General Counsel and Company Secretary: Ms M E Sanz Perez Computershare Investor Services PLC Registered and Corporate The Pavillions 76 Jeppe Street Investor Relations Contacts Bridgwater Road Bristol BS99 6ZY Newtown 2001 South Africa England (PO Box 62117, Marshalltown 2107) Stewart Bailey Telephone: +44 (0) 870 702 0000 South Africa Telephone: +27 637 6031 Fax: +44 (0) 870 703 6119 Telephone: +27 11 637 6000 Mobile: +27 81 032 2563 Fax: +27 11 637 6624 E-mail: [email protected] Australia Computershare Investor Services Pty Limited Australia Fundisa Mgidi Level 2, 45 St George's Terrace Level 13, St Martins Tower Telephone: +27 637 6763 Perth, WA 6000 (GPO Box D182 Perth, WA 6840) 44 St George's Terrace Mobile: +27 82 374 8820 Australia Perth, WA 6000 E-mail: [email protected] Telephone: +61 8 9323 2000 (PO Box Z5046, Perth WA 6831) Telephone: (Australia only) 1300 55 2949 United States Australia Fax: +61 8 9323 2033 Sabrina Brockman Telephone: +61 8 9425 4602 Telephone: +1 212 858 7702 Fax: +61 8 9425 4662 Ghana Mobile: +1 646 379 2555 NTHC Limited
E-mail: [email protected] Martco House Ghana Off Kwame Nkrumah Avenue Gold House General E-mail enquiries PO Box K1A 9563 Airport Patrice Lumumba Road [email protected] Accra (PO Box 2665) Ghana Accra AngloGold Ashanti website Telephone: +233 302 229664 Ghana http://www.AngloGoldAshanti.com Fax: +233 302 229975
Telephone: +233 303 772190 Company secretarial E-mail ADR Depositary Fax: +233 303 778155 BNY Mellon [email protected] BNY Shareowner Services
United Kingdom Secretaries PO Box 358016 AngloGold Ashanti posts information that is St James’s Corporate Services Limited Pittsburgh, PA 15252-8016 important to investors on the main page of its United States of America Suite 31, Second Floor website at www.anglogoldashanti.com and under Telephone: +1 800 522 6645 (Toll free in USA) 107 Cheapside the “Investors” tab on the main page. This or +1 201 680 6578 (outside USA) London information is updated regularly. Investors should E-mail: [email protected] visit this website to obtain important information EC2V 6DN Website: www.bnymellon.com.com\shareowner about AngloGold Ashanti. Telephone: +44 20 7796 8644
Fax: +44 20 7796 8645 Global BuyDIRECTSM PUBLISHED BY ANGLOGOLD ASHANTI E-mail: [email protected] BoNY maintains a direct share purchase and dividend reinvestment plan for ANGLOGOLD ASHANTI. Telephone: +1-888-BNY-ADRS
March 2014 Quarterly Report - www.AngloGoldAshanti.com WorldReginfo - 151229a5-2fa8-4a9a-9559-9c836edee9ed